The NZD/MYR currency pair settled below Friday’s high of 2.3768, its strongest level since February 11th, as the New Zealand Dollar was supported by expectations that the Reserve Bank of New Zealand will pursue an ultra-hawkish monetary policy stance to curb inflation.
RBNZ Governor Anna Breman indicated that policy rates were likely to rise sooner and by more than previously signaled in order to fight inflation.
“The committee remains focused on ensuring inflation returns to target while avoiding unnecessary volatility in the economy,” Breman stated.
This marked the second occasion in the week that Breman underscored the need for tighter monetary conditions to moderate inflation.
“Committee sees inflationary pressures going forward, agrees cash rate needs to be higher going forward,” Breman said on Wednesday after the central bank opted to keep the official cash rate unchanged at 2.25%.
The exotic Forex pair gained 2.09% for the week.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
