New Zealand’s central bank hiked a quarter-point to 8%, a record, and the NZ$ rose to a 22-year high. NZ’s benchmark rate is second-highest among countries with the best crediting ratings, behind only Iceland. [Source: FT / FT Alphaville]

There’s been a slight strengthening of the yen in recent trading that is unlikely to persist. Current rate gaps are too advantageous for there to be any serious unwinding. Expect this situation to last at least through summer.