By Kristine Aquino - Feb 27, 2012 6:09 AM GMT+0700
The Australian and New Zealand dollars climbed to their strongest levels in at least six months against the yen on prospects Asian stocks will advance, spurring demand for higher-yielding assets.
The so-called Aussie also advanced before the European Central Bank’s planned longer-term refinancing operation this week. Euro-area banks are forecast to ask the ECB for 470 billion euros ($633 billion) in three-year funds, according to the median estimate in a Bloomberg News survey. The appeal of New Zealand’s currency, nicknamed the kiwi, was tempered after the nation unexpectedly posted a trade deficit last month.
“The most important driver of the kiwi and the Aussie is still trends in global risk appetite,” said Mike Jones, a foreign-exchange strategist at Bank of New Zealand in Wellington. “All eyes are on the ECB’s LTRO later in the week. If we do see a sizeable take-up, it’s going to be viewed as positive for global growth.”
Australia’s dollar gained 0.6 percent to 87.36 yen at 9:57 a.m. in Sydney after earlier touching 87.48 yen, the highest level since July 8. The Aussie added 0.2 percent to $1.0715. New Zealand’s currency climbed 0.6 percent to 68.26 yen. It earlier reached 68.35 yen, the strongest level since Aug. 1. The kiwi bought 83.69 U.S. cents, 0.1 percent higher than its close at 83.60 cents on Feb. 24 in New York.
The Standard & Poor’s 500 Index (SPX) rose 0.2 percent on Feb. 24. The Stoxx Europe 600 Index gained 0.3 percent.
New Zealand’s imports exceeded exports by NZ$199 million ($167 million), from a revised NZ$306 million surplus in December, a report showed today. The median estimate in a Bloomberg survey was for a NZ$167 million surplus.
Australian Prime Minister Julia Gillard is expected to win a leadership ballot today against predecessor Kevin Rudd, as the Labor party’s ratings lag behind the opposition in opinion polls before elections due in 2013. A tally of voting intentions compiled by the Australian and Age newspapers shows Gillard with a 2-1 margin.
To contact the reporter on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
Posts
No comments:
Post a Comment