The New Zealand Dollar (NZD) is up around 1c against the US Dollar (USD) this week climbing to 0.6515 Wednesday post the RBNZ statement before drifting back in the last 48 hours to 0.6480. The RBNZ raised the cash rate by 50 points to 2.0% from 1.5% as expected, sending the kiwi higher. The RBNZ has now hiked 175 points from last October with more rises on the table at upcoming central bank meeting later in the year. Predictions are for the cash rate to peak at 3.25% by Christmas. Personally we hold the view that being too aggressive could derail the economy as efforts are made to bring the inflationary target back to 1-3%. With equities struggling and wider concerns over global uncertainty with the war on Ukraine we could see further NZD selling into rallies in the near to medium term. For now, buyers should enjoy the kiwi spikes while on offer.
The current interbank midrate is: NZDUSD 0.6483
The interbank range this week has been: NZDUSD 0.6414- 0.6513