Swedish crown, New Zealand dollar up as central banks disappoint doves

Wednesday,   13-Feb-2019   04:41 PM (IST)

The New Zealand dollar and Sweden’s crown rose after their central banks broke with the growing caution of the world’s major monetary-policy makers, surprising traders who expected more dovish signals. The New Zealand dollar was the stand-out performer after the neutral tone of the Reserve Bank of New Zealand’s policy announcement. The Swedish crown also rose after the Riksbank said the economic outlook had not changed much since December and it would stick to its plan to raise interest rates in the second half of 2019.Signaling another major policy shift for the Federal Reserve after it put off raising rates further, Cleveland Fed President Loretta Mester said on Tuesday the central bank would make plans to stop letting its bond holdings diminish. The kiwi rallied as much as 1.7 percent to $0.6852 as traders rushed to cover short positions. Sweden’s crown rose half a percent against the euro and the dollar, to 10.436 and 9.2195, respectively.