Sharechat Logo

NZ dollar hits two-week high vs. euro amid speculation further stimulus in the wind for Europe

Monday 4th November 2013

Text too small?

The New Zealand dollar rose to its highest in almost two weeks against the euro on speculation European Central Bank chief Mario Draghi may add further stimulus in coming months to spur growth, lessening the lure of the common currency.

The kiwi touched 61.30 euro cents over the weekend, and was at 61.20 euro cents at 8am in Wellington, from 60.94 cents on Friday. The local currency slipped to 82.56 US cents from 82.63 cents at the New York close and 82.62 cents in Wellington Friday.

The euro has declined 1.7 percent against the kiwi since weaker euro-zone inflation figures last Thursday fuelled speculation the ECB will need to provide further stimulus to the regional economy to boost growth. The bank meets this Thursday, and money markets, which were already pricing in the possibility of looser ECB policy in the coming year, now reflect an outside chance of a move in the next few months, Reuters said.

"Euro is under pressure as we go into the ECB decision Thursday," Sharon Zollner, senior economist at ANZ New Zealand, said in a note. "The Draghi press conference will be a driver for the euro."

In Asia today, traders will be eyeing a report on Australian retail sales for September, due 1:30pm New Zealand time. Other scheduled for Australia today include job advertisements, house prices, and an inflation indicator.

The New Zealand dollar rose to 87.40 Australian cents at 8am in Wellington, from 87.12 cents on Friday.

In New Zealand today, traders will be eyeing the ANZ Commodity Prices Index for October, due for release at 1pm.

The local currency increased to 51.82 British pence from 51.52 pence on Friday and rose to 81.45 yen from 80.87 yen. The trade-weighted index advanced to 76.87 from 76.63 in Wellington Friday.

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:

12th November 2019 Morning Report
MARKET CLOSE: NZ shares gain, retirement villages buoyed by Auckland housing market bounce
NZ dollar rises, shrugging off US-China trade war woes
Long-serving ACC investment chief calls it a day
Institutional investors continue to shun Fonterra
Card spending stalls; dearer petrol crowds out other goods
Abano directors cave to takeover by scheme of arrangement
Fletcher dismisses subcontractor claims as vague
11th November 2019 Morning Report
Odds favour a rate cut but it's a line ball call

IRG See IRG research reports