The New Zealand Dollar matched gains against the Greenback last week with the Pound Sterling, rising by +2.1% on the week.

These gains largely came on the back of hawkish statements from the RNBZ accompanying the New Zealand central bank's most recent Rate Decision.

NZDUSD also traded to a new recent high at the 0.7649 level during last Friday's session, and even gapped higher the following Monday.

RBNZ Leaves Rates Unchanged

In last Wednesday's Rate Decision announcement, the Reserve Bank of New Zealand left its benchmark Overnight Cash Rate unchanged at 3.00%, as was widely expected.

Although it left rates unchanged, New Zealand's central bank nevertheless made some notably hawkish comments in its associated Rate Statement that took the Kiwi sharply higher.

Hawkish Statements by RBNZ Governor Bollard Boosts Kiwi

In the RBNZ's most recent Rate Statement released along with its Rate Decision last Wednesday, RBNZ Governor Alan Bollard noted that,

"Despite some data turning out weaker than projected, the medium-term outlook for the New Zealand economy remains broadly in line with that assumed at the time of the September Monetary Policy Statement."

Bollard also added that,

"While it is appropriate to keep the OCR on hold today, it remains likely that further removal of monetary policy support will be required at some stage."

The forex market took these comments by Governor Bollard as indicative of continued strength in the New Zealand economy that may well warrant interest rates rises in the near future.

Forex Market Takes Kiwi Sharply Higher

The net result of these comments was an impressive rally in the NZDUSD exchange rate that was further assisted by the release of some positive data out of New Zealand like Building Consents gaining by +0.5% for the month that was a considerable improvement over the previous drop of -17.8%.

The pair eventually reached a new high point at the 0.7649 level last Friday before then gapping up to 0.7657 at the open on Monday from its close last Friday of 0.7623. The rate has since made yet another recent high at the 0.7691 level.