Kiwi hits 65 euro cents before finance ministers meet
BUSINESSDESK: The New Zealand dollar touched a record-high against the euro as the region's finance ministers meet to discuss crisis-fighting measures adopted at June's Brussels summit.
The kiwi hit 65.07 euro cents, the highest since the single currency entered circulation in 2002. It traded at 64.77 cents at 5pm, little changed from 64.79 cents at the close of trading in New York on Friday.
The kiwi fell to 79.60 US cents from the close of New York and was little changed from 79.61 at 8am.
European finance ministers are doing their best to shore up global confidence by meeting to confirm details from last month's summit, where heads of governments agreed to use the eurozone’s bailout fund to support Spain’s bank sector.
"There is no real reason why you would want to hold euros over kiwis," said Chris Weston, market strategist at IG Markets. "The kiwi and the Aussie are still the stand-out currencies that you want to hold on to in the risk space."
In the US, the world's largest economy, investors will be eyeing Wednesday’s June Federal Open Market Committee minutes for fresh clues about whether the country's central bank is prepared to consider additional steps to spur growth and employment.
"The general consensus is that we are going to get a quantitative easing package. The question is just when that will be," Mr Weston said.
The FOMC is set to meet again on August 1.
There was no significant local data today. Markets are awaiting the release tomorrow of the New Zealand Institute of Economic Research's June quarterly survey of business opinion, QV Monthly House Prices dataand electronic card transactions for June from Statistics NZ.
The kiwi was largely unchanged on 78.06 Australian cents from 77.93 cent at the close of New York trading and was little changed on 63.33 yen from 63.42 yen. It remained relatively unchanged on 51.33 British pence from 51.37 pence.
The trade weighted index slipped back to 73.43 from 72.54.