NZ dollar hits seven-week high
Wed, 20 Jun 2012 9:01a.m.
The New Zealand dollar rose to a seven-week high against the greenback amid speculation the Federal Reserve may announce fresh stimulus measures to boost the world's largest economy.
The New Zealand dollar rose to 79.75 US cents just before 8am from 77.31 cents on Tuesday at 5pm.
That's the highest the currency has traded since May 3. The trade weighted index increased to 71.80 from 71.63.
The Federal Open Market Committee meets on Wednesday in Washington, where markets are expecting the central bank will add more stimulus to the US economy after a string of weaker-than-expected data.
The New Zealand dollar's gains are "all based on the hope that the Federal Reserve will come up with the answers," said Alex Sinton, senior dealer at ANZ New Zealand.
"I wouldn't be surprised if we see the kiwi suffering after the FMOC tomorrow."
The kiwi was little changed at 62.89 euro cents from 62.87 cents amid speculation European policymakers will ease the terms of Greece's 240 billion euro bailout package.
Greek elections reduced the immediate risk of a euro-zone break up, with pro-austerity parties New Democracy and Pasok securing 162 seats in the 300-seat Parliament.
The New Zealand dollar was little changed at 78.26 Australian cents from 78.22 cents on Tuesday and rose to 62.95 yen from 62.67 yen.
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20/06/2012 10:03:44 a.m.
When will they do something about the strong Kiwi Dollar? It's getting harder to export and nothing seems to be done about it. The Film industry is an export article too, so it's not surprising to see that they start to pack up and go...
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