High NZD on Trade-Weighted Index May Stay Central Bank's Hand

        0432 GMT [Dow Jones] A "persistently high NZ TWI" will have implications for the Reserve Bank's interest rate track, says BNZ FX Strategist Raiko Shareef. The trade weighted index is currently at 80.75. In its March monetary policy statement, the central bank had tipped it to be at 78.4 in the March and June quarters. "At these levels, there's a good chance the bank may refrain from hiking in June or July. This would undermine near-term NZD strength," says Shareef. However, he is still expecting the NZD/USD to be at 0.78 by year end and 0.72 by mid-2015, weighed by lower commodity prices and a stronger USD. The pair is currently at 0.8697. (rebecca.howard@wsj.com; Twitter: @FarroHoward)
        (END) Dow Jones Newswires

        May 06, 2014 00:32 ET (04:32 GMT)