Sharechat Logo

NZ dollar gains vs euro as Spanish concerns resurface

Wednesday 19th September 2012

Text too small?

The New Zealand dollar rose against the euro as traders speculated on Spain's willingness to seek financial aid and ahead of current account figures for the second quarter that are expected to show a widening deficit.

The kiwi dollar rose to 63.39 euro cents from 63.16 cents at 5pm in Wellington yesterday. The local currency traded at 82.67 US cents, down from 82.79 cents.

Spain's Deputy Prime Minister Soraya Saenz de Santamaria said his government will consider seeking a bailout if the conditions are acceptable, signalling progress in one of the euro-zone's most-indebted nations. Meantime, Germany's ZEW Centre for European Economic Research showed the current conditions gauge fell to the lowest since June 2010.

Figures in New Zealand today are expected to show the current-account deficit widened to $1.64 billion in the second quarter, for an annual gap of $10.56 billion, or 5.2 percent of GDP.

Bank of New Zealand strategist Mike Jones said the kiwi may trade in a range of 82.35 US cents to 83 cents today though "support around 82.35 cents could be tested if the current account deficit figures prove about as nasty as we expect."

Helping provide support for the kiwi, prices rose 2.4 percent in the latest GlobalDairyTrade auction of dairy products, the fourth straight increase. Jones said drought in the US which has driven up grain prices should continue to underpin dairy prices.

The trade-weighted index rose to 73.34 from 73.27 yesterday. The kiwi dollar traded at 79.12 Australia cents, up from 79.08 cents.

The local currency was little changed at 50.90 British pence and rose to 65.15 yen from 65.09 yen.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

NZ dollar gains on G20 preference for growth
NZ dollar dips as Wellington CBD checked for quake damage
NZ dollar gains, bolstered by RBA minutes, strong dairy prices
NZ dollar falls after central bank says it may scale up currency intervention
NZ dollar gains before CPI, helped by dairy gains, rally on Wall Street
NZ dollar trades little changed as US budget talks bear down on deadline
NZ dollar falls with equities on view US to sail over fiscal cliff
NZ dollar weakens as fiscal cliff looms, long bets unwind
NZ dollar sinks to three-week low as equities fall, fiscal talks in focus
NZ dollar slips as fiscal cliff talks grind slower in Washington