The New Zealand dollar ended up, reacting more to US President Barack Obama's state of the union address than to the latest Reserve Bank decision on interest rates.Dealers said the NZ dollar rose slightly after the RBNZ kept rates unchanged at 2.5%, as ex
The New Zealand dollar ended up, reacting more to US President Barack Obama's state of the union address than to the latest Reserve Bank decision on interest rates.
Dealers said the NZ dollar rose slightly after the RBNZ kept rates unchanged at 2.5%, as expected, in an announcement at 9am.
The NZ dollar reached 70.99USc by 5pm, up from 70.52USc at 8am and 70.75USc at 5pm yesterday.
It fell when the euro came under pressure to hit a low around 70.40USc but rose to 70.90USc over a period of about an hour when Mr Obama's address was seen as having a positive tone.
Imre Speizer, currency strategist at Westpac, said general risk aversion was affecting the euro and other currencies, including the NZ dollar.
"The Obama speech is probably the biggest driver of the currency of the day," he said. "Investors liked the general tone of the speech."
Investors are also waiting for a speech on monetary policy by RBNZ governor Alan Bollard tomorrow at 1pm.
Mr Speizer said there were small changes in the short RBNZ statement announcing the interest rate decision today.
"There were a couple of subtle shifts toward the hawkish end of things," he said.
Dr Bollard said: "If the economy continues to recover, conditions may support beginning to remove monetary stimulus around the middle of 2010."
The NZ dollar rose to €0.5062 by 5pm from €0.5026 at the same time yesterday. It was worth 78.73Ac at 5pm from 78.43Ac yesterday and at ¥64.11 from ¥63.09.
The trade weighted index was 64.97 from 64.55 yesterday.
