NZ dollar hits 65 euro cents before finance ministers meet

NZ dollar hits 65 euro cents before finance ministers meet

By Hannah Lynch

July 9 (BusinessDesk) - The New Zealand dollar touched a record-high against the euro as the region's finance ministers meet to discuss crisis-fighting measures adopted at June's Brussels summit.

The New Zealand dollar rose as high as 65.07 euro cents, the highest since the single currency entered circulation in 2002. It traded at 64.77 cents at 5pm, little changed from 64.79 cents at the close of trading in New York on Friday.

The kiwi fell to 79.60 US cents from the close of New York and was little changed from 79.61 at 8am.

European finance ministers are doing their best to shore up global confidence by meeting to confirm details from last month's summit where heads of governments agreed to use the euro-zone’s bailout fund to support Spain’s bank sector.

"There is no real reason why you would want to hold euros over kiwis," said Chris Weston, market strategist at IG Markets. "The kiwi and the Aussie are still the stand out currencies that you want to hold on to in the risk space."

In the US, the world's largest economy, investors will be eyeing Wednesday’s June Federal Open Market Committee minutes for fresh clues about whether the US central bank is prepared to consider additional steps to spur growth and employment.

"The general consensus is that we are going to get a quantitative easing package. The question is just when that will be," Weston said.
The FOMC is set to meet again on Aug. 1.

There was no significant local data today. Markets are awaiting the release tomorrow of The New Zealand Institute of Economic Research's June quarterly survey of business opinion, QV Monthly House Prices data, and electronic card transactions for June from Statistics New Zealand.

The New Zealand dollar was largely unchanged on 78.06 Australian cents from 77.93 cent at the close of New York trading and was little changed on 63.33 yen from 63.42 yen. The kiwi remained relatively unchanged on 51.33 British pence from 51.37 pence. The trade weighted index slipped back to 73.43 from 72.54.

(BusinessDesk)

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