NZ dollar down after QE3 doubts

JAZIAL CROSSLEY
Last updated 17:39 24/08/2012

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Currencies

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The New Zealand dollar fell against the greenback today, after risk off trading throughout Asia Pacific when doubts were cast over the likelihood of quantitative easing in the United States.

The kiwi recently traded at US81.27c, down from US81.32c. It was at 73.00 on the Trade Weighted Index, up from 72.88.

HiFX senior currency strategist Dan Bell said that yesterday the kiwi saw strong rallies which gave investors hopes of quantitative easing in the United States.

"But overnight there was disappointment on that front when one of the US Federal Reserve voting members commented it was not a done deal," Bell said.

"There was a general risk-off theme, following through our market and most of Asia. Japan and China were also trading weaker, a bit of risk off weighed on the kiwi as well."

On the crosses, the kiwi recently traded at 77.87 Australian cents, down marginally from A77.89 earlier. It gained to 64.72 euro cents, up from 64.71 euro cents earlier. It was at 51.24 pence, down from 51.26 pence earlier. It rose to 63.85 Japanese yen from 63.80 yen earlier.

Bell said the kiwi was likely to trade between US81.00c and US81.50c with a bias towards the downside.

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- BusinessDay.co.nz

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