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NZ dollar rises, particularly against aussie, as $US falls

The New Zealand dollar pushed on higher today, particularly against the Australian dollar.It was strong after the Federal Reserve kept US interest rates unchanged and reiterated a pledge to keep rates "exceptionally low" for an "extended pe

NZPA
Wed, 17 Mar 2010

The New Zealand dollar pushed on higher today, particularly against the Australian dollar.

It was strong after the Federal Reserve kept US interest rates unchanged and reiterated a pledge to keep rates "exceptionally low" for an "extended period."

Also, the euro gained against the dollar on Tuesday after ratings agency Standard & Poor's took Greece off credit watch.

By 5pm the NZ dollar had risen to 71.22USc from 70.90USc at 8am, which was up from 70.44USc at 5pm yesterday. It is near six-week highs.

Against the Australian dollar it traded as high as 77.60Ac before comments by Reserve Bank of Australia assistant governor Guy Debelle suggested interest rates could rise further. 

This pushed the kiwi down to 77.40Ac. It was 77.52Ac at 5pm from 76.97Ac at the the close of trading yesterday.

"The Debelle comments pulled the cross back in aussie's favour," said Imre Speizer, currency strategist at Westpac.

He said many traders held long positions in the Australian dollar and short positions in the NZ dollar so when the NZ dollar began rising generally it rose more on the Australian cross.

"There's nothing macro or fundamental between the two at the moment. It is simply positioning and whether the global backdrop is positive or negative for risk."

The NZ dollar is struggling away from its lowest level in more than nine years against the aussie – around 76.10Ac – on March 5.

The NZ dollar was little changed against the European currency, edging up to €0.5166 at 5pm from €0.5144 yesterday.

It was at ¥64.19 from ¥63.47 yesterday and the trade weighted index was up to ¥65.48 from ¥64.96.

NZPA
Wed, 17 Mar 2010
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NZ dollar rises, particularly against aussie, as $US falls
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