N.Z. Dollar Rises From 4-Week Low on Risk Appetite; Aussie Gains
The New Zealand dollar rose from the lowest level in more than four weeks against its U.S. counterpart as risk appetite increased after American retail sales rose more than forecast in September.
New Zealand’s currency, nicknamed the kiwi, and the Australian dollar advanced versus most major currencies as global stocks increased. The Aussie’s gains were tempered by Reserve Bank of Australia Governor Glenn Stevens’ statement that there is scope to further lower interest rates. The central bank will release minutes of its October meeting later.
“Near-term movement is likely to see a domestic impact from the RBA minutes release, where market expectations continue to favor a dovish bias,” Eric Theoret, a currency strategist in Toronto at Bank of Nova Scotia’s Scotia Capital unit, wrote yesterday in a note to clients.
New Zealand’s dollar rose 0.2 percent to 81.85 U.S. cents yesterday in New York after earlier declining 0.4 percent to 81.30 cents, its lowest level since Sept. 11. It gained 0.5 percent to 64.38 yen.
The Aussie dollar appreciated 0.2 percent to $1.0253 and advanced 0.5 percent to 80.64 yen.
The kiwi fell earlier after a private report showed the country’s services industry shrank. The Bank of New Zealand and Business New Zealand said yesterday their Performance of Services Index fell to 49.6 in September. It was the first time since October 2009 that the gauge was below 50, the dividing line between expansion and contraction.
New Zealand’s dollar has strengthened 3.6 percent this year, the biggest increase among the 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The Aussie has fallen 1.8 percent, and the greenback is down 2.3 percent.
U.S. stocks rose, with the Standard & Poor’s 500 Index (SPX) gaining 0.8 percent. The S&P GSCI Index of raw materials fell 0.3 percent.
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