Australian, New Zealand Dollars Rise to Two-Month Highs on U.S. Stock Gain
The Australian and New Zealand dollars advanced to two-month highs as stocks gained in the U.S., boosting investor appetite for riskier assets.
“We have a continuous risk-on environment with a good acceleration in the stock market,” said Fabian Eliasson, head of U.S. currency sales at Mizuho Financial Group Inc. in New York.
Australia’s currency appreciated 0.1 percent to 88.44 U.S. cents at 12:48 p.m. in New York, from 88.33 cents yesterday. It touched 88.71 cents, the highest level since May 14. New Zealand’s dollar added 0.6 percent to 72.36 U.S. cents after reaching 72.55 cents, the highest level since May 10.
U.S. stocks rose as Intel Corp.’s forecast of record yearly profit bolstered confidence earnings growth will justify the equity recent market’s rebound.
The Standard & Poor’s 500 Index advanced 0.2 percent after earlier dropping 0.6 percent. The Dow Jones Industrial Average increased 0.2 percent.
The New Zealand dollar fell earlier as reports on housing and retail sales raised concern the nation’s economic recovery will be slower than anticipated.