NZ dollar soars as Fed considers lower rate hike
The New Zealand dollar has leapt to 68.50 US cents this morning.
The kiwi gained 1.5 percent against the greenback overnight, as investors around the world sold the US dollar.
The markets were surprised by comments yesterday by the Federal Reserve about the state of the global economy. Fed chair Janet Yellen indicated she is having second thoughts about plans for further rate hikes this year.
The Fed had previously indicated that it was considering four separate 25 basis point (0.25 percent) rate increases this year, but it now looks like US rates will rise by 0.5 percent at the most.
The comments make currencies like the New Zealand dollar look more attractive because investors can earn higher interest rates here.
The Australian dollar was another winner. It has hit an eight-month high against the US dollar, rising 1.3 percent to 76.50 US cents.
The New Zealand dollar has risen 0.30 percent against the Australian, trading at 89.59 cents.
The kiwi is up 0.1 percent against the pound, at 47.32 pence.