New Zealand’s dollar climbed to its strongest level since February against the Australian dollar on speculation its central bank will raise interest rates at a faster pace than Australian policy makers.
Asian index futures fell after U.S. stocks dropped by the most in three weeks, while wheat futures entered a bear market. New Zealand’s dollar jumped to a three- week high after its central bank raised interest rates.
The expected fluctuation of the Australian dollar rose toward the highest in more than four months as traders weighed prospects for the Reserve Bank to scrap its easing bias while emerging markets drop.
Australia’s dollar touched a 4 1/2- year low versus its New Zealand peer, as the smaller nation’s central bank flagged a need to remove stimulus and drove a divergence in monetary policy prospects for the two countries.