Yen squeezed as hawkish turn grips central banks
TLT•RBA, RBNZ comments lift the kiwi; bitcoin eases
Reserve Bank of Australia Governor Michele Bullock said upside risks to inflation may be materialising, given energy prices have stayed high, underlining wagers for a rate hike as soon as next week. 0#AUDIRPR
The Aussie dollar AUD= hovered at $0.7120, while the battered New Zealand dollar NZD= appeared to catch a boost from central bank chief remarks that traders took as hawkish.
Reserve Bank of New Zealand Governor Anna Breman said if recent gains in oil prices persist, it would lead to somewhat higher inflation than previously forecast.
The kiwi rose about 0.4% from a near three-month low to $0.5736.
Markets have priced about 100 basis points of rate hikes over the next 12 months in New Zealand, but the kiwi has been weighed down because with the cash rate sitting at 2.75%, that still leaves it lagging the US.
