Dollar gains after US GDP misses mark
Mon, 30 Apr 2012 9:17a.m.
The New Zealand dollar rose more than 1 US cent after America's economy expanded less than forecast in the first quarter, supporting the view the Federal Reserve has little room to move on fiscal policy.
The New Zealand dollar traded at 82.21 US cents at 8am, little changed from 82.19 cents at the close of trading in New York on Friday though up from 81.07 cents in New Zealand on Friday.
The trade weighted index was at 72.84 from 72.79.
Higher-yielding currencies gained after US Commerce Department data showed gross domestic product in the world's largest economy rose at an annual 2.2 percent rate in the first quarter.
That's down from 3 per cent in the previous quarter and missed the 2.5 percent prediction in a Bloomberg survey.
The data "added fuel for the market to think that the Fed will stay in a stimulative policy," said Stuart Ive, currency strategists at HiFX.
The kiwi rose to 62.11 euro cents from 62.01 cents at the close of trading in New York and 61.50 at the close of local trading on Friday after Italy paid more to borrow at their bond auctions.
The country sold 10-year bonds at an average yield of 5.84 per cent, compared with 5.24 percent at the last auction in March.
"It was closely watched and it went well but as you can expect they paid higher yields for the privilege," Mr Ive said.
The New Zealand dollar was little changed at 78.55 Australian cents from 78.54 cents at the close of trading in New York.
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30/04/2012 9:27:12 a.m.
excellent news, look forward to the price of petrol coming down at the pumps, they have been holding it up longer than they should of. But this is the problem when you have AA in bed with the petrol companies now, there is no independent organization to hold them in check.
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