Kiwi Advances, Aussie Gains as Stocks Boost Demand
The New Zealand dollar rose against the U.S. currency and Australia’s was stronger as this week’s rally in global equities spurred demand for higher-yielding assets.
The Aussie and kiwi gained against the yen this week as the Bank of Japan (8301) said in minutes of its February meeting that its decision to expand asset purchases was “appropriate.”
“The Aussie and kiwi dollars have been able to reclaim some ground as part of the confidence play with U.S. equities hitting some milestones,” said Tim Waterer, a currency dealer at CMC Markets in Sydney. “There’s more upside for the Aussie against both the yen and greenback.”
New Zealand’s currency rose 0.7 percent to 82.49 U.S. cents at 12:20 p.m. in New York, advancing its weekly rise to 0.4 percent. It fetched 68.75 yen from 67.74 a week ago.
Australia’s dollar bought $1.0586 and gained 0.1 percent since last week. It rose 0.3 percent to 88.21 yen, and advanced 1.2 percent this week.
The MSCI World Index (MXWO) of equities has gained 2.2 percent since March 9, the most since the five-day period ended Jan. 20. The Standard & Poor’s 500 Index yesterday closed at its highest level since June 2008.
Japanese central bank Governor Masaaki Shirakawa’s board last month unexpectedly added 10 trillion yen ($120 billion) to an asset-purchase program and set a 1 percent inflation goal after an economic slide fueled criticism it has been slower to act than counterparts.
One board member indicated that aiming for inflation of 2 percent in the long term would avoid one-sided yen moves, the minutes released today showed.
To contact the reporter on this story: Candice Zachariahs in Sydney at firstname.lastname@example.org;
To contact the editor responsible for this story: Rocky Swift at email@example.com