U.S. Dollar Extends Rally on Jobless Claims

On October 24th, John Dawson reports on the US dollar's strength following a 14-year low in initial jobless claims, causing the dollar to rise against the yen for six days. Speculation grows that the Bank of Japan may implement further easing measures to meet its 2% inflation target. Meanwhile, the New Zealand dollar, or Kiwi, falls after a benign third-quarter inflation report, suggesting the Central Bank may hold interest rates until the end of next year.

What was the recent trend observed in the Kiwi currency?

What implications does the benign third quarter inflation number have for the Central Bank's interest rates?