Dollar builds on gains

The New Zealand dollar climbed above US75 cents yesterday, building on the gains it made when it reached a two-year high against the US dollar on Saturday. The latest jump was prompted by the US Federal Reserve’s decision overnight on Wednesday to keep interest rates on hold. That saw the kiwi climb from US74.5c to US75.2c yesterday morning. Despite the kiwi’s strength, falling inflation and stalling house price rises, New Zealand bond yields indicate markets expect the next official cash rate move to be upwards.