Sharechat Logo

NZ dollar charges higher

Thursday 14th July 2011

Text too small?

The New Zealand dollar charged back to post-float high levels against the greenback, which tumbled broadly after Federal Reserve chief Ben Bernanke said the Fed could resort to more monetary stimulus if the United States economy weakened further.

Reuters data showed the kiwi peaking early today at US83.85c, having risen from US82.14c at 5pm. By 8am it remained elevated at US83.60c.

The NZ dollar was also up to 0.5910 euro at 8am from 0.5873 at 5pm, and was up to A77.80c against the Australian dollar from A77.35c.

BNZ strategist Kymberly Martin said that after a prolonged period focusing on offshore developments, the focus for the NZ dollar today should be on the long-delayed first quarter GDP release, due out at 10.45am.

"Expect the NZD to show a knee-jerk spike, to a new post-float high, if the number beats consensus expectations."

The US dollar hit a record low against the Swiss franc, and fell against the euro, in the wake of Bernanke's testimony.

Surprisingly strong Chinese growth data also helped overshadow worries about the euro zone debt crisis after Fitch Ratings said an ambitious Italian deficit reduction plan would help stabilize the country's credit rating.

The euro held gains even after Fitch downgraded Greece deeper into junk territory, citing the absence of a new and fully funded financing programme.

Bernanke, in testimony before a House of Representatives committee, said: "The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might re-emerge, implying a need for additional policy support."

The NZ dollar was also up to 66.02 yen at 8am from 65.30 at 5pm, while the trade weighted index rose to 72.13 from 71.39.



  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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report