Thursday, May 31, 2007

New Zealand Dollar Heads for First Weekly Gain Since April on Yield Gap

(Bloomberg) -- New Zealand's dollar is heading for its
first weekly gain since April amid speculation central bank
Governor Alan Bollard could raise interest rates next week,
buoying demand from investors who borrow at lower rates overseas.

New Zealand's currency has gained 5.1 percent the past three
months as the central bank raised borrowing costs in March and
April to a record 7.75 percent. There is a 24 percent chance of a
quarter-point rise in the benchmark interest rate at the June 7
review, according to an index calculated by Credit Suisse.


Read more at Bloomberg Currencies News

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