New Zealand dollar gains as sticky inflation spurs rate hike bets

The New Zealand dollar was among the few gainers for the day, rising 0.2% after data showed that consumer price index inflation in the country remained sticky through the second quarter. The currency was trading close to an over five-month high.

While the Reserve Bank of New Zealand had signaled an end to its nearly two-year rate hike cycle earlier in July, the overheated inflation data spurred bets that the central bank may be forced into raising interest rates further.

But the New Zealand economy is expected to deteriorate further this year, after it entered a technical recession in the first quarter.