Events across the Tasman – a no-change in interest rates and an expected decision about the Australian government – pushed the New Zealand dollar higher in a late run against its Australian counterpart.However, the kiwi was steady against the
Events across the Tasman – a no-change in interest rates and an expected decision about the Australian government – pushed the New Zealand dollar higher in a late run against its Australian counterpart.
However, the kiwi was steady against the US dollar, having recovered ground lost earlier in the day.
Late this afternoon, the Reserve Bank of Australia said it left interest rates at 4.5%, as expected, as inflation posed few problems and the global outlook remained uncertain.
Putting more pressure on the Aussie, which had taken a sharp dive, a press conference at which the Australian government was expected to be revealed in fact made the situation no clearer.
The Labor Party and the conservative coalition had the support from one of each of the three independent MPs, with the third then announcing support for Labor.
By 5pm, the kiwi was at 79.10Ac, up from 78.68Ac late yesterday afternoon and a similar level this morning. After Julia Gillard was announced as prime minister, the kiwi was trading at 91.20Ac as the aussie dipped further.
Against the US dollar, the kiwi was at 72.32USc, from 71.13USc yesterday. It hit a low of 72.02USc during today's session.
The kiwi was firmer against the euro, at €0.5652 from €0.5594, and sterling, at 47.04p from 45.63p, and steady against the yen.
The trade weighted index jumped to 67.21 from 65.92 late yesterday.
In trading among the major currencies, the euro slid from yesterday's three-week peak against the US dollar due to concerns about the European banking sector.
