Tuesday, May 22, 2007

New Zealand Dollar Falls First Time in Three Days as Investors Shun Risk

(Bloomberg) -- The New Zealand dollar fell the first
time in three sessions as a decrease in risk appetite prompted
investors to shun riskier currencies that benefit from higher
interest rates.

The local currency gained 16 percent in the past 12 months,
buoyed by a record 7.75 percent interest rate that is the highest
after Iceland's among AAA-rated countries. New Zealand's benchmark
stock index closed down for the first time in four days yesterday,
and the Dow Jones Industrial Average declined for a second
consecutive session, deterring riskier investments.


Read more at Bloomberg Currencies News

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