N.Z. Dollars Rise


The New Zealand dollars rose on speculation the Federal Reserve will lower its benchmark interest rate by 1 percentage point today, boosting the yield advantage on the nations' assets.

New Zealand's dollar trimmed yesterday's largest decline in two weeks after Prime Minister Helen Clark said the country will ride out any economic contraction.

The New Zealand dollar advanced to 80.48 U.S. cents from 80.36 cents late in Asian trading yesterday. It earlier dropped to 79.23 U.S. cents, the weakest since March 11.

The New Zealand dollar was supported after Prime Minister Helen Clark said the nation will keep posting annual growth. Finance Minister Michael Cullen said today he couldn't rule out the possibility of a recession, defined as two consecutive quarters of contraction in gross domestic product.


TradingEconomics.com, Bloomberg
3/18/2008 7:19:17 AM