(Bloomberg) -- Investors should sell New Zealand's
dollar and buy Australia's, where interest rates are more likely
to rise, said Joshua Williamson, senior strategist at TD
Securities Ltd.
New Zealand's record 8 percent interest rate, 1.75
percentage points more than Australia's, has spurred a 10.7
percent gain in the currency over the past 12 months as investors
were attracted to the country's higher-yielding assets. The rise
in consumer demand that has seen New Zealand's economy expand 2.5
percent in the year to March 31 may be coming to an end, as this
year's three rate increases take their toll, said Williamson.
Read more at Bloomberg Currencies News
dollar and buy Australia's, where interest rates are more likely
to rise, said Joshua Williamson, senior strategist at TD
Securities Ltd.
New Zealand's record 8 percent interest rate, 1.75
percentage points more than Australia's, has spurred a 10.7
percent gain in the currency over the past 12 months as investors
were attracted to the country's higher-yielding assets. The rise
in consumer demand that has seen New Zealand's economy expand 2.5
percent in the year to March 31 may be coming to an end, as this
year's three rate increases take their toll, said Williamson.
Read more at Bloomberg Currencies News
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