The continuing rise of the kiwi

The New Zealand dollar continues its rapid rise on perceptions that the central bank will be unable to stem a rally powered by Japanese investors looking for higher yields. The currency rose to its highest level in 22 years on 25 June.

The currency has now climbed 35% against the yen and 27% against the US dollars in the past twelve months as investors pursue the high yields on assets denominated in New Zealand dollars.

The Reserve Bank of New Zealand, which has called the gains "unjustified" (see

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