NZ, Aust dollars feel ripples from drops in yen
The yen fell on speculation that the G-7 nations will keep selling the currency to curb its appreciation and help support Japan's economy.
The New Zealand dollar recovered some ground against the yen, mostly as the Japanese currency fell against other major trading partners, apparently on speculation that Group of Seven nations will keep selling the currency to curb its appreciation and help support Japan's economy.
The G-7 late last week agreed to coordinate intervention to weaken the yen against both the greenback and the euro, after it reached post-World War II highs.
Traders looked to the need for Japanese investments offshore to be cashed up so that money could be brought home in the wake of the magnitude 9.0 earthquake. Re-insurance companies are also likely to need yen to pay out on policies held by Japanese insurers.
Both the Australian and New Zealand dollars strengthened as they followed the euro higher, Asian stocks rose and Japan made progress in bringing a damaged nuclear power plant under control, boosting demand for higher-yielding assets.
Though financial markets in Japan were shut today for a spring equinox holiday, the kiwi was at ¥59.35 at 5pm, compared with ¥58.97 early today and ¥59.66 at the start of the weekend.
The NZ dollar last Friday initially jumped from around ¥57 but over the weekend edged to 58.97.
The kiwi also fell to €0.5173 euro at 5pm today from €0.5184 at 5pm on Friday and finished the day at 73.30USc and 73.27Ac against the US and Australian dollars.
The trade weighted index fell to 64.17 at 8am today from 64.42 at 5pm on Friday but by 5pm today had recovered to 64.37.
Data releases in this country are expect to provide some local direction for the kiwi: December quarter balance of payments figures are due out on Wednesday, followed by gross domestic product on Thursday.
NZPA
Mon, 21 Mar 2011
Mon, 21 Mar 2011
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NZ, Aust dollars feel ripples from drops in yen
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