The New Zealand dollar went uphill on Tuesday morning. NZD skyrocketed after news of inflation for the third quarter was released, showing higher-than-expected figures. This led to several investors betting on another 75 bps rate hike.
New Zealand currency rose 1.2% experiencing a two-week high and trading at $0.5700. The currency rose after the CPI release, which reported a three-month growth of 7.2%. The expected growth was much lower at 6.6%. The previous quarter’s CPI figures showed a reading of 7.3%. The latest quarter rose 2.2% from the previous as compared to an expected 1.6%.
Moreover, the risk sensitive Australian dollar also rose against the U.S dollar. The Aussie dollar was hoisted up by sureties of the Reserve bank continuing to hike up borrowing rates despite comparatively favorable inflation data.
While on the other hand, the Asian currencies showed little to no movement on Tuesday. The Chinese yuan fell in comparison to the greenback. The Japanese yen, however, rose 0.1% coming out of its three decade low.
The U.S dollar, was also up by 0.2%, while the dollar index rose only 0.1% on Tuesday morning.