The New Zealand dollar jumped in New York on Wednesday after the Reserve Bank of New Zealand unexpectedly raised interest rates, drawing more investors to the highest yielding currency in the developed world.
The kiwi dollar jumped to $0.7560, compared to $0.7510 just ahead of the decision and the highest since the currency was unshackled and left to float freely in March 1985. The last time the NZ dollar was at current levels was in June 1982, when the exchange rate was regulated by the central bank under government direction.
The Australian dollar surged earlier to a 17-year peak against the US currency after higher-than-expected first-quarter growth data suggested Australian interest rates, now at 6.25 percent, could be headed higher.