The New Zealand dollar climbed to its top level since early August 2011 against the world's reserve currency on Thursday after the country stated its February trade surplus was larger than it believed it would be, according to Bloomberg.
The kiwi notched advances of at least 0.6 percent all 16 of its major counterpart currencies, though finance minister Bill English said on Wednesday that the currency presently is too strong. Exporters in New Zealand are likely to run into challenges because of that strength, English said.
Reuters reports Grant Spencer, deputy governor with the Reserve Bank of New Zealand said home loans are presently causing increased levels of peril.
"The trade surplus is supportive, but we have also had comments from the RBNZ's Spencer, discussing under what conditions they might decide to remove the macroprudential measures on housing," strategist Ian Stannard with Morgan Stanley in London told Reuters wire service on Thursday. "That may let inflation rise and also suggests that they might tighten policy as well."
The New Zealand dollar gained roughly 1 percent against the U.S. dollar.
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