Sharechat Logo

NZ dollar holds near record-high vs euro ahead of finance minister meeting, Spanish bond yields rise

Tuesday 10th July 2012

Text too small?

The New Zealand dollar held near a record-high versus the euro as markets prepare for European finance ministers to finalise crisis-fighting measures adopted at last month's summit, and as Spanish bond yields rose above 7 percent.

The New Zealand dollar traded at 64.69 euro cents at 8am, little changed from 64.77 cents at 5pm. The currency rose as high as 65.07 euro cents yesterday, the highest since the single currency entered circulation in 2002.

The kiwi was largely unchanged at 79.66 US cents from 79.60 cents. Markets remains fixed on Brussels where eurozone treasurers are doing their best to shore up global confidence and find a solution to Spain's banking crisis.

Early comments by European Central Bank President Mario Draghi have signalled policymakers may be open to another interest-rate cut if the economic outlook warrants it.

The yield on Spanish 10-year government bonds rose to a month-high 7.08 percent, a borrowing cost regarded as unsustainable for an economy. "Everyone is just hanging out for details of the euro meeting," said Stuart Ive, currency strategist at HiFX.

"If we saw positive news out of Europe this morning - you would see the kiwi rally." Ive said the New Zealand dollar is "still looking at a target of 80 US cents." Investors are also eyeing the release of the minutes from the June Federal Open Market Committee on Wednesday for fresh clues as to whether the US central bank is prepared to further stimulate growth and employment.

"The Fed guys are painting a fairly gloomy picture and that means easing is very much back on the cards," Ive said. The New Zealand dollar was little changed at 78.02 Australian cents from 78.06 cents yesterday ahead of the National Australia Bank business confidence survey.

Locally, the New Zealand Institute of Economic Research's quarterly survey of business opinion is set for release this morning.

"Obviously if it comes in at a worse number it's not a good sign and you might see the kiwi drop five points or so but it's not a market mover," Ive said. QV monthly house values, ANZ job advertisements and electronic card transactions for June from Statistics New Zealand are also due out today.

The New Zealand dollar slipped to 51.26 British pence from 51.33 pence and little changed at 63.35 yen from 63.33 yen. The trade weighted index fell to 72.37 from 72.44.

  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:

Further Contract Win Strengthens Scott Technology’s Position In Mining Sector
China’s Assertiveness Is Becoming a Problem for Its Friends, Too
New Talisman - Chairman’s Address to AGM 2020 August 6, 2020
T&G reports its 2020 Interim Results
Gold price hits $2,000 for first time on Covid
TruScreen strengthens its market presence in central and eastern Europe
Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria
Talisman Quarterly Activities Report to 30 June 2020
General Capital gives notice of Annual Meeting

IRG See IRG research reports