Kiwi stregthens on back of budget

The New Zealand dollar rose broadly yesterday, after the government budget caused ratings agency Standard and Poor’s to revise its outlook on New Zealand's credit rating, from "negative" back to "stable".

• This was a big reprieve for the kiwi, and was largely due the government’s decision to scrap tax cuts in a broader debt reduction plan.
  
• The government also stated that it did not expect the economy to return to growth until the last quarter of this year.