Kiwi up on positive EU sentiment

JAZIAL CROSSLEY
Last updated 18:17 24/05/2012

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The New Zealand dollar was up against the greenback today on positive sentiment from a meeting of European leaders showing commitment to keeping Greece in the euro zone.

The kiwi recently traded at US75.13c, up from US75.05c in the morning. On the Trade Weighted Index against major trading partners' currencies it was at 68.50, down from 68.52 in the morning.

Markets have been on edge, with fear about the impact the Greece leaving the currency would have but at an informal meeting, European Council president Herman Van Rompuy voiced a desire to keep the indebted nation in the euro provided it met its commitments.

"The positive rebound was probably related to the EU meeting where there were mildly positive noises in the press conferences along the lines of wanting to keep Greece in the euro zone and providing some assistance for it, and the rest of the euro zone in the form of infrastructure projects," Westpac Banking Corp market strategist Imre Speizer said.

"There was also news that European governments were preparing a contingency plan for if Greece did need to exit the euro zone, so mixed messages but they are preparing for the worst."

On the crosses, the kiwi recently traded at 77.11 Australian cents, up from A76.94c earlier. It was at 59.71 Japanese yen, up from 59.69 yen previously. It rose to 59.75 euro cents from 59.67 euro cents earlier. It was at 47.90 pence, up from 47.80 pence earlier.

Speizer said the kiwi could trade between US74.50c and US75.50c overnight.

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- BusinessDay

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