New Zealand/USD: Trade Deficit Woes

The Dollar made some strong gains yesterday and is firm heading into the U.S. session, although the precise reasons are difficult to pin down. The most popular view seems to hold that a sell-off in some emerging currencies - namely the South African Rand and New Zealand Dollar - initiated a bout of "flight-to-quality" Dollar buying. Some dovish commentary from a Bank of Japan board member (rates will be adjusted "very slowly and very carefully") may have also helped the greenback, which rose significantly against the Yen. (FT). Read More...