Kiwi up as euro finds strength

JAZIAL CROSSLEY
Last updated 18:20 18/06/2012

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The New Zealand dollar was up against the greenback today as the euro reached a four week high after the pro-bailout New Democracy party gained the most votes in the Greek election.

The party, which was leading by a slim margin, showed commitment to remaining in the euro zone.

The kiwi recently traded at US79.34c, up from US78.84c earlier. On the Trade Weighted Index against major trading partners' currencies, it was up to 71.40 from 71.12 earlier.

HiFX senior currency strategist Dan Bell said the New Zealand dollar had gained throughout the day.

"The Greek election result was seen by most market participants as a positive, which had the New Zealand dollar up this morning trading to a high of around US79.36c against the US.

Through the course of the day we've seen a pretty positive start to the week through global markets. A lot of the market was positioned to be expecting a positive outcome from the Greek election," Bell said.

"Once the European and North American markets open overnight we will see if the kiwi is in for more positive gains. To follow through higher we may need further confirmation Greece is getting closer to forming a coalition Government."

On the crosses, the kiwi recently traded at 78.26 Australian cents, up from A78.08c in the morning. It was up to 62.39 euro cents from 62.10 euro cents earlier.

It was at 50.64 pence, up from 50.17 pence previously. The New Zealand dollar rose to 62.76 Japanese yen, from 62.05 yen previously.

Bell expected to kiwi to trade between US78.80c and US79.50c overnight, with a bias towards the upside.

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- © Fairfax NZ News

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