19 Mar 2015

Kiwi up after US rate rise news

10:51 am on 19 March 2015

The New Zealand dollar has continued to rise since the United States Federal Reserve early today signalled fewer interest rate hikes in the future.

The New Zealand dollar rose sharply this morning, jumping more than a cent and a half to a high of 75.5 US cents.

It has eased back since, and is currently trading at 74.9 cents.

The Fed has dropped its pledge to be patient in deciding when to begin raising rates, but it cut its rate forecasts over the next few years and downgraded its outlook for the American economy.

While it hinted rates could start rising as early as June, it also says it will wait until the labour market improves further.

Interest rates had been kept at a record low of zero percent since the financial crisis in 2008.

In a statement the Fed said while US job market conditions had improved, it was still concerned about the health of the economy and a rise in interest rates depends on economic data in the next few months.

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