New Zealand Dollar May Gain as Appeal of High Yields Sparks Carry Trade

(Bloomberg) -- New Zealand's dollar may rise to a
four-day high as record-high interest rates lure investors to
the nation's higher yielding assets.

The currency, known as the kiwi, gained 28 percent against
the yen the past 12 months, spurred by the so-called carry trade,
where traders borrow at Japan's lower interest rates to buy
assets elsewhere. New Zealand's benchmark interest rate is 7.25
percentage points more than the cost of borrowing in Japan where
the 0.5 percent rate is the lowest among major economies.


Read more at Bloomberg Currencies News