The New Zealand dollar advanced yesterday and kept its gains today as optimism returned to the Forex market and stocks rallied on hopes for corporate earnings in the United States. The currency reached the highest level since 2008 against the Japanese yen.
The Standard & Poor’s 500 Index of shares rose 0.3 percent yesterday. Analysts estimated that earning of S&P 500 companies increased as much as 2.9 percent last quarter. The MSCI World Index advanced 0.4 percent.
There is still plenty of tension on the FX market, but traders had enough optimism to drive the kiwi (as the New Zealand currency is nicknamed) higher. The NZ dollar was especially strong versus the yen, which was weakened by intervention speculations.
NZD/USD rose from 0.8362 to 0.8397 yesterday and traded at 0.8401 as of 3:11 GMT today. NZD/JPY traded near 73.91 after rallying from 72.78 to 73.75.
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