Australian & New Zealand Currencies Gain vs. Yen

  September 15th, 2010 at 19:30, Vladimir Vyun

Australian dollarThe Australian and New Zealand dollar went up versus the Japanese yen today after Japan’s government intervened, selling the yen. The New Zealand dollar fell against its US and Australian counterparts.

Yoshihiko Noda, Japan’s Finance Minister, said today that Japan unilaterally sold the yen to protect thee nation’s exports, causing the yen to weaken against other most traded currencies, including the Australian and New Zealand ones. The Aussie earlier also strengthened against the greenback, before returning to the opening level. Timothy Connors, head of the foreign exchange at the Custom House Global Foreign Exchange, said:

What we’re going to see in the short-term is Aussie strengthening against the yen on the back of that intervention. Depending on how long this intervention continues on for it could only be a short-term impact on the overall momentum which is for further U.S. dollar weakness.

The kiwi, as New Zealand’s dollar nicknamed, fell versus the greenback on the outlook that the Reserve Bank of New Zealand would keep the interest rates unchanged as it estimates the damage caused by nation’s worst earthquake in 80 years. The kiwi also slipped versus the Aussie as New Zealand’s economy considered weaker than Australia’s.

AUD/USD traded near its opening level of 0.9394 today as of 17:30 GMT, NZD/USD fell from 0.7344 to 0.7337. AUD/JPY surged from 78.00 to 80.43 and NZD/JPY jumped from 60.97 to 62.82. AUD/NZD went up from 1.2783 to 1.2803.

If you have any questions, comments or opinions regarding the New Zealand Dollar, feel free to post them using the commentary form below.

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