New Zealand Dollar Rises Against U.S. Dollar on Higher Inflation Expectations

The New Zealand dollar added some value against the U.S. dollar on Tuesday. On Monday, the Nielsen Company published its survey of inflation expectations in New Zealand. According to its data, the expected inflation increased to around 3%. An increase in expected inflation made some traders more convinced that the New Zealand central bank will start raising interest rates, making holding the New Zealand dollar more attractive. As a result, the New Zealand dollar added some value against the U.S. dollar. In today's early trading, one U.S. dollar was buying 1.2572 New Zealand dollars, or 0.64% below previous close. Traders who believe inflation pressures will prompt the New Zealand central bank to raise its interest rates will be interested in the Long NZD Short USD ETF (LNZD).