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NZ dollar at 26-month high against euro

The New Zealand dollar rose to a 26-month high against the euro after the European Union said Greece's budget deficit was worse than feared and Moody's cut its rating of Greek government debt.Around 8am the kiwi was buying 0.5342 euro, up from 0.5305 at 5

NZPA
Fri, 23 Apr 2010

The New Zealand dollar rose to a 26-month high against the euro after the European Union said Greece's budget deficit was worse than feared and Moody's cut its rating of Greek government debt.

Around 8am the kiwi was buying 0.5342 euro, up from 0.5305 at 5pm, and after having peaked early today at 0.5349 euro, according to Reuters data.

Against the greenback, the New Zealand overnight stayed within the US71.40c to US70.70c range where it has been almost all this week. By 8am the kiwi was at US71.14c, little changed from the US71.06c at 5pm.

The US dollar was supported by data showing a fall in US jobless claims and an increase in existing US home sales. The reports reinforced the view that the US economy is on a steady path to recovery and outperforming Europe.

BNZ strategist Mike Jones said the NZ dollar was the strongest performing currency overnight, holding its ground around US71c despite rising risk aversion and a firmer greenback.

While growth-sensitive currencies such as the NZ dollar found support from a string of upbeat data releases, concerns about Greece's fiscal crisis pared risk appetite and encouraged demand for safe haven currencies.

The NZ dollar also rose to 66.53 yen at 8am from 65.97 at the local close, while it was little changed against the Australian dollar at A76.60c by the local open having moved within an A76.80c and A76.20c range since late morning Tuesday.

The trade weighted index rose to 66.18 at 8am from 65.96 at 5pm.

NZPA
Fri, 23 Apr 2010
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NZ dollar at 26-month high against euro
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