NZ Dollar Rises Sharply Against Majors

NZ Dollar Rises Sharply Against Majors

The New Zealand dollar staged a sharp gain against major rivals by about 2:15 am ET Tuesday.

Against its Australian counterpart, the kiwi advanced further in today's Asian session after the release of Reserve Bank of Australia's rate cute decision.

The Australia's central bank unexpectedly lowered the benchmark cash rate by 25 basis points to 3.25 percent.

The decision will be effective from October 3.

Economists expected the central bank to retain the rate at 3.5 percent. In a statement, Governor Glenn Stevens said the Policy Board judged that "on the back of international developments, the growth outlook for next year looked a little weaker."

As of now, the kiwi is trading near more than a 1-year high of 1.2409 versus the Aussie, which may be compared to Monday's close of 1.2526.

The NZ unit is currently trading near 0.8312 against the US dollar and 64.39 versus the Japanese yen from previous session's lows of 0.8271 and 64.52, respectively.

The kiwi that dropped to a new multi-day low of 1.5595 versus the euro by about 12:35 am ET, edged up thereafter and presently trading at 1.5535.