SYDNEY, Nov 24 (Reuters) - The New Zealand dollar jumped to
its highest since mid-2018 on Tuesday as investors scaled back
wagers of more policy easing by the country's central bank given
the risk of surging house prices there.
The kiwi dollar was up 0.7% at $0.6967, after
reaching a top of $0.6985 and clearing resistance around
$0.6969. The Aussie dollar rose in sympathy to reach $0.7310
The move came after Finance Minister Grant Robertson said
the government had sought advice from the Reserve Bank of New
Zealand (RBNZ) on how it could help stabilise property prices.
Robertson has proposed including stabilising house prices as
a factor for consideration in the central bank's remit when
formulating monetary policy.
The market took that to mean the RBNZ might have less scope
to ease policy further, given interest rates were already at
all-time lows and the housing market was running hot.
The bank has in the past mused about taking rates below
zero, but investors have now largely priced out such a prospect.
Swap rates quickly moved to imply less chance of another
easing at all, while yields on 10-year bonds
climbed 7 basis points to 0.90%.
(Reporting by Wayne Cole; Editing by Ana Nicolaci da Costa)