NZ dollar rises above 82 US cents
Wed, 12 Sep 2012 6:33p.m.
The New Zealand dollar rose above 82 US cents for the first time in a month as stock markets across Asia rallied on optimism.
The kiwi rose to 82.02 US cents at 5pm in Wellington from 81.86 cents at 8am and 81 cents on Tuesday on optimism the Federal Reserve will start printing more money and the German courts will approve the legality of a Europe-wide bailout fund.
The trade-weighted index advanced to 72.84 from 72.36 on Tuesday.
Equity markets across the Asia Pacific rallied on Wednesday in anticipation US policymakers and the German judiciary will give more credibility to efforts to shore up the global economy. Japan's Nikkei 225 index rose 1.6 per cent in afternoon trading, while Hong Kong's Hang Seng was up 0.8 per cent and Australia's S&P/ASX 200 index rose 0.9 per cent.
The Federal Open Market Committee will announce its monetary policy review on Thursday in Washington, and chairman Ben Bernanke is tipped to unveil a third round of asset purchases while pushing out the timeframe for near-zero interest rates.
Germany's Federal Constitutional Court is set to judge the legality of the nation taking part in the 500 billion euro European Stability Mechanism.
"The underlying fundamentals for the global economy continue to look pretty average," said Dan Bell, currency strategist at HiFX in Auckland.
"We might see a continuation of this kiwi upside over the next few days, but it's going to come back down to Earth."
The New Zealand dollar was little changed at 78.24 Australian cents from 78.26 cents on Tuesday, and climbed to 63.83 yen from 63.35 yen. It advanced to 51.02 British pence from 50.59 pence on Tuesday, and gained to 63.71 euro cents from 63.42 cents.
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12/09/2012 7:15:50 p.m.
Destruction of the world economy's tied to the Printing of PAPER, What a scam, What fools would fall for that.
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