(Bloomberg) -- The New Zealand dollar rebounded
from four days of declines as a recovery in U.S. stocks gave
investors confidence to return to riskier assets such as the
carry trade.
The trade, where investors borrow cheaply in yen to buy
higher yielding assets, has helped the currency, known as the
kiwi, gain 24 percent against the dollar and 29 percent versus
the yen over the past 12 months. New Zealand's record 8.25
percent benchmark interest rate, which is 7.75 percentage points
higher than Japan's, lures investors to the returns offered by
the country's fixed-income assets.
Read more at Bloomberg Currencies News
from four days of declines as a recovery in U.S. stocks gave
investors confidence to return to riskier assets such as the
carry trade.
The trade, where investors borrow cheaply in yen to buy
higher yielding assets, has helped the currency, known as the
kiwi, gain 24 percent against the dollar and 29 percent versus
the yen over the past 12 months. New Zealand's record 8.25
percent benchmark interest rate, which is 7.75 percentage points
higher than Japan's, lures investors to the returns offered by
the country's fixed-income assets.
Read more at Bloomberg Currencies News
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