New Zealand’s dollar rose the most against the U.S. currency among major peers, from a five-year low reached Tuesday.
The kiwi strengthened against all of 16 major counterparts after depreciating 9.4 percent last quarter versus the greenback, its biggest drop since end-September. All except three of the 17 economists surveyed by Bloomberg expect the central bank to lower its key interest rate again on July 23, after it eased in June. Australia’s dollar climbed for a third day as data showed building approvals rose more than expected in May.
“The selloff had been too sharp and investors are probably just taking some money off the table,” Roy Teo, a currency strategist at ABN Amro Group NV in Singapore, said of the kiwi. The rally may offer investors the chance to make potentially profitable bets that the currency will resume declines, he said.
New Zealand’s dollar surged 0.5 percent to 67.99 U.S. cents at 6:53 a.m. in London, snapping three days of losses. It reached 67.48 cents on Tuesday, its weakest since June 2010.
Analysts expect the kiwi to end the year at 68 cents, according to median estimates.
Australia’s currency gained 0.1 percent to 77.15 U.S. cents, adding to a 1.3 percent advance in the second quarter. The Aussie touched a six-year low of 75.33 cents in April.