NZ dollar holds near two-month high
Mon, 02 Jul 2012 8:47a.m.
The New Zealand dollar held near a two-month high after European leaders pledged to provide aid for the region's banks, spurring optimism over a resolution to the Eurozone's debt crisis.
The New Zealand dollar traded at 80.08 US cents just before 8am on Monday, little changed from 80.11 cents at the close of trading in New York on Friday and up from 79.33 cents at 5pm on Friday in New Zealand.
The trade-weighted index was little changed on 72.15 from 72.24.
Global share markets have warmed to European leaders' decision to drop the requirement that governments get preferred creditor status on Spain's banks. The Standard & Poor's 500 Index rose 2.5 per cent on Friday and Germany's DAX 30 surged 4.3 percent.
Higher-yielding currencies such as the kiwi surged alongside stocks on an increased appetite for risk.
"Risk appetite is set to remain this week," said Mike Jones, market strategist at Bank of New Zealand.
"The rally on the European relief seems to have some legs."
The New Zealand dollar fell to 63.12 euro cents from 63.25 cents at the close of trading in New York.
The kiwi dropped to 77.94 Australian cents from 78.14 cents and was little changed on 63.83 yen from 63.89 yen.
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