Kiwi climbs on Japan stimulus news

RICHARD MEADOWS
Last updated 08:56 23/01/2013

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Currencies

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The New Zealand dollar crept back to the US84c mark overnight after Japan announced its aggressive monetary easing plan yesterday afternoon.

The kiwi recently traded at US84.00c, little changed from US83.90c at 6pm yesterday. On the Trade Weighted Index of major trading partners' currencies it was unchanged at 75.30.

ASB Institutional head of FX sales Tim Kelleher said the kiwi had not moved far overnight, but had seen some weakness against the yen.

"The market's probably had a bit of buy the rumour ... when the Bank of Japan announced their easing yesterday," he said.

"We've seen some profit-taking on the dollar-yen, that's put some pressure on the kiwi-yen."

After weeks of sustained weakness, the yen actually recovered ground against most currencies after investors learned the BOJ's expanded stimulus package would not start until 2014.

Offshore data was mostly positive overnight, with equity markets moderately higher in the US.

"Even so, the kiwi seems to be running into good sellers around that US84.25c level, to US84.50c," said Kelleher.

"The bottom of the range appears to be back at that US83.50c mark in the next few days."

On the crosses, the New Zealand dollar recently traded at 79.52 Australian cents, down from A79.69c yesterday, and 74.52 yen, down from 75.38 yen. It was at 63.07 euro cents, up from 62.96 euro cents, and 52.93 pence, little changed from 52.96p yesterday.

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- © Fairfax NZ News

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