Sharechat Logo

Kiwi rises against fast falling euro

Thursday 12th May 2011

Text too small?

The New Zealand dollar rose to an 11-week high against the euro, which was driven broadly lower by renewed worries about Greek debt and another sell-off in the commodities market.

The kiwi peaked at 0.5563 euro early today, according to Reuters data, climbing from 0.5523 at 5pm, and easing from the peak to 0.5550 at 8am.

The euro dropped to a three-week low against the US dollar, firmly breaking below its 50-day moving average around US$1.43, which traders are likely to take as a sign of more losses to come.

The euro's drop accelerated after steep losses in stocks and commodities led to a stampede for the safe haven US dollar.

Speculation over whether Greece will receive more bailout funding kept risk appetite volatile as investors continued to price in a high probability that the country will eventually need to restructure its debt.

Broad US dollar strength continued, with the kiwi down to US78.83c at 8am from US79.50c at 5pm, and falling to 63.87 yen from 64.24.

The kiwi did rise to A73.69c from A73.19c, while the trade weighted index was 68.18 at 8am from 68.29 at 5pm.

BNZ currency strategist Mike Jones said fear and volatility returned to markets overnight as a sea of red in commodities markets triggered a bout of risk aversion. Oil prices started to lose ground yesterday after weaker than expected data on Chinese industrial production in April.

Falling commodity prices sapped demand for commodity-linked currencies such as the NZ dollar, while the greenback and yen outperformed on safe haven demand, Jones said.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sky Network Television Limited (NZX: SKY) Transformation accelerates - Sky raises FY22 guidance
PGG Wrightson Limited (NZX: PGW) FY22 Operating EBITDA forecast to better last year
Vulcan Steel Limited (NZX: VSL) Trading Update & Earnings Upgrade
6th December 2021 Morning Report
Synlait Milk Limited (NZX: SML) Partnership to enhance soil health; test regen ag practices
Property for Industry Limited (NZX: PFI) Strong Valuation Outcome, Penrose Acquisition
3rd December 2021 Morning Report
Fonterra Shareholders Fund (NZX: FSF) Fonterra provides Milk Price, earnings and Q1 update
Kiwi Property Group Limited (NZX: KPG) Signs Sale and Purchase Agreement with IKEA
2nd December 2021 Morning Report