However, the NZ dollar and the Australian dollar have not lost ground against the USD, remaining close to the middle of recent trading ranges at 0.6150 and 0.6650 respectively. The prospect of Australia increasing interest rates over coming months when everyone else (NZ excluded) is looking to cut interest rates is a real and growing probability. The Yen will remain under downward pressure until they actually make a decision to increase interest rates. New Zealand’s domestic inflation problem – identify causes and enact solutionsOver recent years this column has repeatedly highlighted and documented the “elephant in the room” problem New Zealand has with permanently high domestic/non-tradeable inflation. A stronger NZ dollar will only eventuate if you push NZ interest rates well above US interest rates.

Source: Stuff June 24, 2024 03:18 UTC