NZD rises on Japanese QE

05:26, Sep 19 2012

The New Zealand dollar rose against the greenback today as the Bank of Japan announced a quantitative easing programme that put the market in a risk-on mode favourable to the kiwi.

The kiwi recently traded at US82.81c, up from US82.65c in the morning. On the Trade Weighted Index against major trading partners' currencies the kiwi was at 73.30, up from 73.10 earlier.

Westpac market strategist Imre Speizer said the kiwi was firmer this afternoon.

"We had a release of local current account balance data which didn't really have any effect but after 2pm it bounced up to US82.93c which was the high on the day, rising 40 basis points," Speizer said.

"Much of it was to do with the Bank of Japan, which had a meeting where they announced this afternoon an expanded quantitative easing programme. It does look like positive tone may resonate throughout London and possibly New York, so we may have a risk-on evening unless something unexpected happens."

On the crosses, the kiwi recently traded at 79.16 Australian cents, up from A79.11c in the morning. It eased to 63.37 euro cents from 63.39 euro cents earlier. It rose to 50.95 pence from 50.89 pence earlier, and was at 65.61 Japanese yen, up from 65.20 yen in the morning.

Speizer expected the kiwi to trade between US83.00c and US83.50c overnight, with a bias towards the upside.