NZ dollar firm ahead of budget
The kiwi rose to above 79USc and closed just below that level.
The New Zealand dollar rose to above 79USc today and closed just below that level ahead of the budget tomorrow.
The NZ dollar was at 78.86USc at 5pm, up from 78.39USc at 8am and 78.18USc at 5pm yesterday.
"We came out of New York reasonably well-bid and carried on, basically," one dealer said. "I think it just rose on short covering ahead of the budget."
Investors are watching to see how big the government's borrowing programme is and how credit rating agencies react.
Fonterra's online auction early today helped cap the topside, with weighted average prices falling 1.1%, ANZ said.
The past 24 hours have been a roller coaster ride for the Australian dollar, IG Markets said. Yesterday's Reserve Bank of Australia meeting minutes saw the market price out any imminent rate hikes, with the Australian dollar falling to $US1.0533. It was at $US1.0649 at 5pm today.
The euro was firmer today after recovering from a seven-week low earlier in the week.
The NZ dollar was little changed at €0.5522 at 5pm from €0.5517 at the same time yesterday, while rising to 74.04Ac from 73.80Ac and to ¥63.97 from ¥63.43.
The trade weighted index was 68.24 at 5pm from 67.85 yesterday.
NZPA
Wed, 18 May 2011
Wed, 18 May 2011
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NZ dollar firm ahead of budget
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