NZ dollar rises above 74USc for first time in 10 months as ECB hints at tapering
The euro surged to its highest level against the US dollar since August 2015.
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The New Zealand dollar rose above 74 US cents for the first time in 10 months as the greenback fell against the euro after comments from European Central Bank president Mario Draghi that policymakers would consider winding back quantitative easing measures.
The kiwi climbed to 74.05 US cents as at 8am in Wellington from 73.45 cents late yesterday. The kiwi fell to 63.63 euro cents from 63.80 cents.
The euro surged to its highest level against the US dollar since August 2015 after Draghi said policymakers would discuss possible changes to the bank's bond-buying programme in the Northern Hemisphere autumn, although he gave no firm date.The US dollar index fell to its lowest level in almost a year amid ongoing concerns that the Trump administration will struggle to enact policies the market had hoped would stimulate the US economy.
"The euro rose sharply after the ECB signalled tapering would be considered in a few months' time," Imre Speizer, senior markets strategist at Westpac Banking Corp said in a note. "The underlying tone was that reflation has replaced deflation and that a change in guidance was likely 'in the fall'."
The kiwi may extend its gains to 74.85 US cents in coming days, returning to its September peak, he said.
Traders will be watching for June migration data in New Zealand today.
The trade-weighted index rose to 78.27 from 77.82 yesterday.
The kiwi rose to 93 Australian cents from 92.51 cents late yesterday. It advanced to 82.81 yen from 82.25 yen after the Bank of Japan kept its policy settings unchanged yesterday and said a rate of 2 percent may not be reached for three more years.
The kiwi increased to 57.04 British pence from 56.40 pence and gained to 5.0015 yuan from 4.9681 yuan.
(BusinessDesk)
Jonathan Underhill
Fri, 21 Jul 2017
Fri, 21 Jul 2017
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NZ dollar rises above 74USc for first time in 10 months as ECB hints at tapering
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