Euro Defies Stimulus Bets Before Draghi While Kiwi Bounces Back
- Premium to sell euro highest since July, risk reversals show
- New Zealand finance minister `relatively positive' about China
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The euro barely budged as traders refrained from making major bets before European Central Bank President Mario Draghi gives a policy update Thursday.
The euro has weakened 0.4 percent versus the greenback in the past week, the smallest decline among 16 major peers after the British pound and Danish krone, while most economists expect the ECB to boost stimulus as early as December. New Zealand’s dollar strengthened for the first time in five days after the nation’s Finance Minister Bill English said the foreign-exchange rate has adjusted quite considerably. Australia’s currency declined after the nation’s biggest lender increased its mortgage rate, fueling speculation policy makers will consider further easing.