NZ dollar to strengthen

"In New Zealand you’ve got the twin drivers of US dollar weakness and high interest rates," said Sue Trinh, currency strategist at the Bank of New Zealand in Wellington. "US dollar weakness over the past year has been one of the key factors in driving the Kiwi upwards. In the next 12 months we expect a return to that US dollar weakness. The natural implication of this for the Kiwi is appreciation."

David de Garis, senior treasury economist at ANZ in Melbourne, emphasised the impact on the

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