NZ dollar rises amid economic gloom
Wed, 27 Jun 2012 9:11a.m.
The New Zealand dollar has risen despite concerns the European Union summit on Thursday will fail to deliver a concrete solution to the region's debt crisis and weaker consumer confidence in the United States.
Such sentiment has usually turned investors away from risk and high yielding currencies, such as the kiwi.
The New Zealand dollar traded at 79.20 US cents just before 8am up from 78.85 cents at 5pm on Monday.
The trade weighted index increased to 71.87 from 71.64.
Markets are focused on the EU's two-day summit in Brussels on Thursday to see if any decisive steps will be taken towards solving the eurozone's debt crisis.
It will be the first summit since Greece's parliamentary elections on June 17 resulted in victory for pro-bailout parties. French and Italy are urging Chancellor Angela Merkel to take conclusive steps to end the crisis, now in its third year.
"The local currencies, the kiwi and the aussie, performed relatively well overnight, deferring any news out of Europe until we get past the meeting at the end of the week," said Stuart Ive, currency strategist at HiFX.
In the US, consumer confidence fell to a five-month low as mounting concern over jobs and incomes dimmed the outlook for spending. The Conference Board's sentiment index fell to 62 from a revised 64.4 in May.
The New Zealand dollar was little changed on 78.60 Australian cents from 78.64 cents at 5pm on Monday.
The kiwi increased to 63.31 euro cents from 63.05 cents and increased to 62.87 yen from 62.69 yen.
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