New Zealand Dollar May Extend Gain to Two-Decade High, RBC Capital Says

(Bloomberg) -- The New Zealand dollar may reach a
two-decade high against the yen in the next three months as
higher interest rates attract investors, according to RBC
Capital Markets Inc.

The appeal of New Zealand's benchmark overnight rate, which
is 7.5 percentage points higher than Japan's, may make it hard
for the Reserve Bank of New Zealand to stem further gains, said
Adam Cole, senior currency strategist at RBC in London. New
Zealand's central bank sold the local currency yesterday,
according to Cole. The central bank also intervened in the
currency market on June 11.


Read more at Bloomberg Currencies News