Kiwi up ahead of rates call

JAZIAL CROSSLEY
Last updated 17:41 12/09/2012

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The New Zealand dollar rose against the greenback today as markets looked towards the Federal Open Markets Committee Meeting held later this week where US monetary policy will be discussed.

The Reserve Bank of New Zealand also releases its decision on interest rates tomorrow morning, expected to be a no-change to the 2.50 per cent Official Cash Rate.

The kiwi recently traded at US82.00c, up from US81.86c in the morning. It was at 72.70 on the Trade Weighted Index against major trading partners' currencies, down from 72.78 at 8am.

HiFX senior currency strategist Dan Bell said the kiwi rallied throughout the course of the day following a positive trading session overnight.

"There continues to be a focus on expectations of further monetary stimulus from the US Federal Reserve on Friday and the ESM ruling [in German courts about the legality of the bailout fund] is expected to be announced 8pm tonight."

On the crosses, the kiwi was at 78.24 Australian cents, down from A78.31c in the morning. It was at 63.71 euro cents, up from 63.54 euro cents earlier.

The kiwi recently traded at 51.01 pence, up from 50.82 pence earlier. It was at 63.85 Japanese yen, up from 63.51 yen in the morning.

Bell expected the kiwi to trade between US81.80c and US82.50c overnight with a bias towards the upside.

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- BusinessDay.co.nz

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