Thursday, July 26, 2007

New Zealand Dollar Declines as Bollard Suggests Rate Increase May Be Last

(Bloomberg) -- New Zealand's dollar had the biggest
slide in a month and bonds rose after central bank Governor Alan
Bollard signaled an interest-rate increase today may be the last.

The local dollar fell against all of the 16 most-active
currencies as Bollard said a 1 percentage point move in rates
this year to a record 8.25 percent should be enough to contain
inflation. A 28 percent surge in New Zealand's currency against
the U.S. dollar in the past year is ``not sustainable'' he said.


Read more at Bloomberg Currencies News

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