NZ dollar holds near seven-week high
Thu, 21 Jun 2012 9:54a.m.
The New Zealand dollar held near a seven-week high after the Federal Reserve extended its stimulus measures less than some traders expected and ahead of figures expected to show a modest pick-up in the local economy.
The New Zealand dollar traded at 79.59 US cents in volatile trading following the Fed's statement, up from 79.49 cents at 5pm on Wednesday.
The trade weighted index strengthened to 71.75 from 71.59.
Fed policymakers will expand their programme to replace short-term bonds with longer-term debt by $US267 billion through the end of 2012. The continuation of Operation Twist "should put downward pressure on longer-term interest rates and help to make broader financial conditions more accommodative," the Federal Open Market Committee said in a statement.
"The market had previously decided that the minimum they were expecting the Fed to do was Operation Twist," said Stuart Ive, currency strategist at HiFX.
"Now the market has decided it is not enough."
The New Zealand economy probably grew 0.5 percent in the first three month of the year, based on a Reuters survey of 13 economists taken ahead of Thursday's release of official figures.
The New Zealand dollar eased to 62.62 euro cents from 62.71 cents on Wednesday, was little changed on 78.04 from 78.00 and higher at 63.17 yen from 62.69 yen.
Post a Comment
Before commenting, please take the time to read our moderation guide
(Won't be published)
Calls are growing for the Auckland Council to rethink its pl...
Kiwifruit giant Zespri has been fingered in a scandal which ...
Wellington company Xero has scooped the top prize at the ann...
The head of one of our biggest banks wants the Government to...
New Zealand's beef and lamb is still being blocked from ente...
Copyright © 2013 MediaWorks TV. All Rights Reserved.