Swinging | NZ Dollar Swinging Up And Down With Risk Mood
July 28, 2010 – 1:46 am
Back to previous page Go to the business section NZ dollar swinging with risk mood Published: 9:39AM Wednesday July 28, 2010 Source: NZPA Read Tools: Email Print Text Size Share onimg Retweetimg The New Zealand dollar pushed up to a six-month high close toUS74c late last night but then fell away quickly.BNZ markets strategist Mike Jones said that for the most part,the NZ dollar tracked gyrations in risk appetite and global equitymarkets last night.Earlier in the night, upbeat European economic data and solidprofit announcements from UBS and Deutsche Bank buoyed optimismabout the global outlook,Jones said.European equities rose and the VIX index – a proxy for globalrisk aversion – tracked steadily lower.That all served to underpin demand for high yielding currenciessuch as the kiwi, while safe haven currencies such as the US dollarand yen were shunned.Advertisement But the lofty highs for the NZ dollar did not last long, andanother disappointing read on US consumer confidence released laterin the overnight session eroded investors’ risk appetite and thesafe haven currencies staged a comeback.Climbing from around US73.20c at lunchtime yesterday, the NZdollar reached as high as US73.95c shortly before midnight,according to Reuters data, before falling away to be at US73.27c at5pm.The kiwi also reached a five-week high 64.68 yen before fallingto 64.44 at the local open, having been at 63.84 yen at 5pm.The NZ dollar slipped to 0.5635 euro at 8am from 0.5648 at 5pm,and was down to A81.20c against the Australian dollar from A81.40cat the local close. The trade weighted index was 68.36 at 8am from68.39 at 5pm. Tools: Email Print Text Size share this article: Facebook Twitter more Business News Video NZI Business: Making money from the RWC (3:46) NZI Business July 28: Morning markets report (1:48) NZI Business SME: Mobile Mentor (3:23) Business News Business News NZ dollar swinging with risk mood Millions of fake pound coins in UK Claim wage gap with Aussies still widening US consumer confidence dims Consent sought for Wairarapa wind farm View all Business News Advertisement Most Popular Most Read Most Watched Outcry forces bus lane rule change Supreme pie winner reveals secret Brad Pitt spotted in Dunedin? Police locate wanted man Lufthansa flight crashes in Saudi Arabia ONE News Minute: Be informed. Quickly. What should you do with a spare $5000? (3:50) Low flying at Queenstown high risk? (5:26) Killers star Ashton Kutcher talks about the movie and marriage (3:47) Richie McCaw jokes around (1:41)
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