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NZ dollar surges in early morning trade


The New Zealand dollar surged in early morning trade, buoyed by positive sentiment as investors bet legislators in Greece will approve an austerity package needed to avert a debt default.

NBR staff
Wed, 29 Jun 2011

The New Zealand dollar surged in early morning trade, buoyed by positive sentiment as investors bet legislators in Greece will approve an austerity package needed to avert a debt default.

At 8am the kiwi was buying US81.15c, from US80.44c at 5pm, and having dipped to around US80.25c shortly after midnight before starting a rapid ascent for several hours.

Stocks in the United States had a strong day and the euro rose, on the hopes for Greece and after tough talk on inflation from European Central Bank (ECB) President Jean-Claude Trichet.

Markets expect the ECB to raise interest rates next month despite the debt woes in Greece and elsewhere.

The NZ dollar fell from 0.5627 euro at 5pm to its lowest level in nearly three weeks around 0.5590 early today before strengthening to 0.5650 at 8am. It lifted to 65.83 yen at 8am from 65.01, and was slightly higher at A77c.

The trade weighted index lifted to 70.30 from 69.86 at 5pm.      

NBR staff
Wed, 29 Jun 2011
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NZ dollar surges in early morning trade
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