NZ dollar hits 22-month high vs euro   11 May 2010

Businesswire  – The New Zealand dollar hit a 22-month high against the euro after debt concerns about the PIGS (Portugal, Ireland, Greece and Spain) eased, with European politicians agreeing to package to shore up investors’ sentiment.

The kiwi surged 1.2% against the euro after the European Commission announced it will set up 750 billion euro facility of loans, guarantees, and funding to help the PIGS fund their deficit, while the European Central Bank announced it will buy government and private in “dysfunctional” markets to ease “severe tensions.”

The U.S. Federal Reserve reinstalled its emergency swap lines with the ECB to help take the pressure off short-term money markets. Equity markets surged in Europe and on Wall Street as investors’ sentiment bounced back on the package, while the 10-year swap rates on the PIGS’ government bonds narrowed. Greek bonds shed more than 600 basis points, and Portuguese and Irish bonds shedding more than 100 basis points each.

“The markets are back to happy days with relief across the board” after the Euro-zone package announcement, said Mike Jones, strategist at Bank of New Zealand. “The kiwi outperformed the euro because New Zealand’s fundamentals are more positive than the Euro-zone’s.”

The kiwi climbed to 56.44 euro cents from 55.73 cents yesterday, and slipped to 72.27 U.S. cents from 72.64 cents. It was little changed at 68.57 on the trade-weighted index of major trading partners' currencies, from 68.50, and slipped to 67.33 yen from 67.70 yen. It edged down to 79.96 Australian cents from 80.28 cents yesterday, and gained to 48.62 pence from 48.42 pence.

Jones said the currency may trade between 71.50 U.S. cents and 73 cents as Asian markets digest the impact of the European package. A flood of Chinese data due this afternoon, including retail sales, industrial production and producer prices may remind people about “the Asian growth story” and underpin support for the kiwi, he said.

Statistics New Zealand will release data showing spending on electronic cards for April, and while economists believe it may be softer than the March data due to the early timing of Easter, pre-sales of Rugby World Cup tickets on credit cards may provide a boost.

The Bank of England left its benchmark interest rate unchanged at 0.5% and kept the size of its asset purchase facility at 200 billion pounds as negotiations to form a government continue between the Liberal Democrats and the Conservative and Labour Parties.


Add a comment

Bookmark and Share


Biosecurity New Zealand launched

30 Apr 2018 Environment By Hon Damien O'Connor
  30 April 2018 Minister for Biosecurity Damien O’Connor launched Biosecurity New Zealand at the Zealandia... more

Opinion: Auckland Regional fuel tax vote a victory for progress

30 Apr 2018 News By Hon Phil Tywford
30 April 2018 Auckland Council is to be congratulated for this afternoon voting 15-2 in favour of the regional fuel tax, Transport... more


Minister hails new Secure Exports Scheme partner

30 Apr 2018 Business News By Hon Meka Whaitiri
30 April 2018 Customs Minister Meka Whaitiri today welcomed the signing of a partnership between New Zealand Customs and dairy... more

RBNZ Governor supports macro-prudential policy

16 Mar 2018 Business News
Macro-prudential policy has been particularly useful in the current environment of globally low interest rates, where monetary policy... more


Kiwi indie-pop trio heads to London for the very first time - and the show is already sold out

30 May 2018 Arts By Charlotte Everett
Indie-pop trio nomad have left New Zealand behind to tour internationally for the first time. NZNewsUK London Editor Charlotte Everett... more

Thousands turn out to ANZAC services in London

27 Apr 2018 ANZAC By Charlotte Everett
Image by Peter Livingstone; article by Charlotte Everett   “I’m of the generation who grew up with elders from the... more


No new solutions in housing report

12 Feb 2018 Property By Michael Woodhouse
MONDAY, FEBRUARY 12, 2018   The Government's housing stocktake report released today adds no new knowledge or... more

Stocktake finds housing crisis deeper, more entrenched

12 Feb 2018 Property
12 FEBRUARY 2018 An independent stocktake of New Zealand’s housing sector has found the housing crisis the country faces is deeper... more


Community organisations chosen to sponsor refugees in New ZealandI

26 Jan 2018 Migration By Hon Iain Lees-Galloway
26 JANUARY 2018 Immigration Minister Iain Lees-Galloway has today announced the four community-based organisations who will be the... more

Building occupations added to skill shortage list

14 Dec 2017 Migration By Iain Lees-Galloway
15 DECEMBER 2017 It will be easier for the building industry to find the workers it needs to help address New Zealand’s housing... more


International visitors spend $10.6bn in year to December

22 Feb 2018 Travel & Tourism
International visitor spending reached a record high of $10.6 billion in the year to December 2017, Tourism Minister Kelvin Davis... more

NZ Election 2017: Tourism fund for infrastructure and conservation

28 Aug 2017 Travel & Tourism
Tourism fund for infrastructure and conservation Posted by Kris Faafoi on August 28, 2017 Labour will estaba Tourism and... more


French win over England timely for All Blacks

13 Mar 2018 Rugby By Lynn McConnell
  12 March 2018 France's upset victory over England in the Six Nations at the weekend was the perfect result for the All... more

Winter Olympics: NZ Triples Medal Count in Single Day

22 Feb 2018 Sport
New Zealand has tripled its Olympic Winter Games medal count in a single stunning afternoon at PyeongChang 2018. Zoi... more


Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

New Auckland DHB chairs announced

30 Apr 2018 Appointments
30 April 2018 Health Minister Dr David Clark has announced new chairs to lead Auckland’s three District Health Boards. The... more

Law Commissioner appointed

29 May 2017 Appointments
29 May 2017 Former Secretary for Justice Belinda Clark has been appointed as Law Commissioner, Justice Minister Amy Adams announced... more


Auckland employment hubs benefit over 500 young job seekers

8 Mar 2018 Recruitment By Hon Willie Jackson
8 MARCH 2018 Minister of Employment Willie Jackson today visited the Auckland CBD Jobs and Skills Hub and the Southern Initiative in... more

Fastest growing jobs - NZ recruitment

21 Dec 2017 Recruitment
New Zealand’s increasing need for social services has seen jobs in the Community Services & Development industry among the... more