New Zealand Dollar Rises Against U.S. Dollar on Record Debt

New Zealand is expected to announce record debt of NZ$16.7 billion or 8.4% of gross domestic product by the end of June this year. The high deficit is because of spending on damage and recovery from earthquakes in September and February. Investors will be encouraged by strong action taken by the government to return back to posting budget surpluses, however, following the announcement of spending cuts. The announcement seemed to reassure investors as the New Zealand dollar gained 0.31% against the U.S. dollar. At the moment, one U.S. dollar buys 1.2636 Kiwi dollars. Traders who believe the New Zealand government will be successful in bringing its budget deficit under control soon will be interested in the WisdomTree Dreyfus New Zealand Dollar Fund BNZ or the Long New Zealand Dollar Short US Dollar ETC (Sterling) ETF (NZDP).