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NZ dollar rises against greenback

The New Zealand dollar rose against the greenback, as a rise in global stocks and commodities reduced safe-haven bids on the US dollar and boosted commodity-linked currencies such as those of Australia and New Zealand.Around 8am today the kiwi was buying

NZPA
Mon, 01 Mar 2010

The New Zealand dollar rose against the greenback, as a rise in global stocks and commodities reduced safe-haven bids on the US dollar and boosted commodity-linked currencies such as those of Australia and New Zealand.

Around 8am today the kiwi was buying US69.84c, up from US69.37c at 5pm on Friday, having managed to peak above US70c early Saturday for the first time in three days.

ANZ bank said the NZ dollar had started a steady recovery during the Asian session and punched through key resistance levels on Friday night.

Technically, the NZ dollar remained within a broad consolidation zone of US68.50c to US70.50c, and subject to offshore sentiment around the euro, ANZ said.

"Fundamentally the positive January trade release on Friday will help to assure those thinking the end was near that it is not."

The euro fared well after recent reports of the European Union putting together a rescue plan for Greece's debt troubles were greeted positively.

But Greg Salvaggio, senior vice-president for capital markets at Tempus Consulting in Washington, said that while reports of a German bank buying Greek debt had lifted the single currency, the market "remains incredibly bearish" on the euro zone.

As economic data and "the situation in Europe continues to deteriorate," the euro would be under tremendous pressure, he said.

The NZ dollar edged up against the European and Japanese currencies, to be buying 0.5118 euro at the local open from 0.5106 at 5pm, and up to 62.05 yen from 61.96.

Against the Australian dollar, the kiwi slipped to A77.75c at 8am from A77.96c at Friday's local close, while the trade weighted index was up to 64.56 from 64.37.

NZPA
Mon, 01 Mar 2010
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NZ dollar rises against greenback
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