New Zealand Dollar Rallies on Corporate Earnings
The New Zealand currency is trading this week near to a nine-month high versus the U.S. dollar, as corporate earnings and stocks performance attracted investors to the riskier profile of the kiwi if compared to more conservative currencies like the greenback and the yen.
The New Zealand dollar traded yesterday in its highest level versus the greenback after the Standard & Poor’s 500 Index reached the strongest peak since November on corporate earnings, pushing investors to purchase high-yielding currencies like the New Zealand dollar and its Australian counterpart. Today in Asia, stocks climbed for eight consecutive days, after companies like Apple Inc. and Starbucks Corp. posted better-than-expected earnings yesterday during the U.S. stock trading session. Investors’ confidence in South Pacific is strong since Australian investors got a premium from two-year bonds, increasing risk appetite in the region.
Unexpectedly high earnings coming from U.S. corporations surprised markets in a positive way, triggering risk appetite and increasing a favorable sentiment towards high-yielding currencies like the New Zealand dollar, which is moving accordingly to stocks, during this week. If the current scenario remains for a longer period, it is possible that the kiwi will hit record highs, specially versus the U.S. dollar and the Japanese yen.
NZD/USD traded at 0.6582 as of 12:04 GMT from a previous rate of 0.6537. NZD/JPY traded at 62.16 from 61.08.
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Earlier News About the New Zealand Dollar:
- New Zealand Dollar Rebounds on Central Bank Statements (2009-07-14)
- New Zealand Dollar Weakens on Faltering Confidence (2009-07-13)
- New Zealand Dollar Advances as Interest Rates Remain Stable (2009-06-11)
- NZD Gains for 4th Day Against U.S. Dollar (2009-05-21)
- New Zealand Interest Rate Reaches Record Low at 2.5% (2009-04-30)