NZD up, France downgraded
The New Zealand dollar rose against the greenback today after France had its credit rating downgraded due to weak growth.
The kiwi recently traded at US81.85c, up from US81.76c. It was at 73.40 on the Trade Weighted Index compared to 73.36 in the morning.
HiFX senior currency strategist Dan Bell said the kiwi managed to hold onto overnight gains.
"It rose on what was a positive night for risk assets overseas. The New Zealand dollar rallied to over US82.00c then came under a bit of selling pressure after Moody's downgraded France which was a bit of a surprise," Bell said.
"Overall it has held up well. It is still trading just under US82.00c and looks reasonably buoyant given most equity markets in Asia are in positive territory."
On the crosses, the kiwi was at 78.58 Australian cents, down slightly from A78.59c in the morning. It rose to 63.92 euro cents, up from 63.84 euro cents earlier. Against the Japanese yen it was at 66.51 yen, up from 66.34 yen earlier. The kiwi recently traded at 51.43 pence, up from 51.39 pence earlier.
Bell expected the kiwi to trade between US81.50c and US82.20c overnight, with a slight bias to the topside.