NZ dollar at month-high against greenback
Wed, 12 Sep 2012 9:32a.m.
The New Zealand dollar climbed to its highest in a month against the greenback on Wednesday morning, ahead of the US Federal Reserve's two-day policy meeting.
The dollar rose to 81.86 US cents at 8am, its highest since August 6, from 81 cents at 5pm yesterday.
The trade weighted index increased to 72.78 from 72.36.
The Federal Open Market Committee in the US is tipped to announce a third round of quantitative easing and push out the timeframe for near-zero interest rates to 2015.
"It is fuel to the fire on expectations for further quantitative easing," said Stuart Ive, currency strategist at HiFX.
"There is a strong possibility the Fed will do something. We'll see the kiwi go up against the US on that basis."
The kiwi appeared to be "trying to push its way up" with resistance coming in around 82.10 US cents and support at 81 cents, Ive said.
Fitch Rating has affirmed New Zealand's AA rating and stable outlook, citing its "strong track record of monetary policy management, product fiscal management, high level of economic development and a strong governance and fiscal environment".
"Not only did Fitch affirm the rating but they expect a boost from the Christchurch rebuild," Ive said.
The New Zealand dollar was little changed at 63.54 euro cents from 63.42 cents on Tuesday, ahead of Germany's Federal Constitutional Court ruling on the nation's participation in 500 billion euro European Stability Mechanism.
It was also little changed at 78.31 Australian cents from 78.26 cents on Tuesday.
The kiwi rose to 63.51 yen from 63.35 yen on Tuesday, and to 50.82 British pence from 50.59.
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