The New Zealand dollar fell today after weaker than expected current account data but it rose against a weak euro.The NZ dollar was 70.37USc at 5pm from 70.54USc at 8am and 70.72USc at 5pm yesterday.The currency rose to around 70.80USc in morning trading
The New Zealand dollar fell today after weaker than expected current account data but it rose against a weak euro.
The NZ dollar was 70.37USc at 5pm from 70.54USc at 8am and 70.72USc at 5pm yesterday.
The currency rose to around 70.80USc in morning trading but gapped down to around 70.40USc after current account data was released.
Statistics New Zealand reported a seasonally adjusted current account deficit of $3.1 billion in the three months to December. That follows a $39 million surplus in the September quarter, the first surplus in 20 years.
The deficit was significantly larger than the market expected, Westpac said.
The large turn around between the September and December quarters was driven by a rise in the income earned from foreign investment in this country, Statistics said. Tax transactions in the banking sector in the June and September quarters had reduced the current account deficit.
"Now we are leading into gross domestic product data tomorrow," one dealer said. "We haven't broken out of a range we've been in the last three days."
Swings in risk appetite and in the euro against the greenback kept most currencies volatile overnight.
In Asian trading today the euro fell to an all-time low against the Swiss franc and to a near 10-month low against the dollar as investors worried about Greece's finances ahead of a European Union summit.
The NZ dollar rose to €0.5230 at 5pm from €0.5216 at the same time yesterday. It was at ¥63.67 from ¥63.86 yesterday and was at 76.73Ac from 77.10Ac.
The trade weighted index was 65.28 at 5pm from 65.38 yesterday.
