9 Jan 2013

NZ dollar gains against major currencies

6:06 pm on 9 January 2013

Renewed concerns about Europe's ability to recover from its sovereign debt crisis have boosted the New Zealand dollar against the euro.

AAP reports that the New Zealand dollar has gained against the greenback and euro ahead of the European Central Bank reviewing its monetary policy amid signs the 17-nation bloc's economy is deteriorating.

The kiwi rose to 83.80 US cents at 5pm on Wednesday from 83.50 cents at 8am and 83.55 cents on Tuesday. It advanced to 64.09 euro cents from 63.63 cents on Tuesday.

European central bankers are expected to keep the benchmark interest rate at a record low 0.75% when they review monetary policy settings at their Thursday meeting, as weaker economic figures spark fears about the region's ability to recover from its sovereign debt crisis.

Eurozone unemployment rose to a record 11.8% in November, according to Eurostat data, while separate data showed Germany's exports dropped more than expected in the same month.

The kiwi dollar increased to 79.84 Australian cents from 79.71 cents on Tuesday after government figures showed consumer spending unexpectedly shrank 0.1% in November.

New Zealand's currency gained to 73.27 yen from 73.10 yen after Reuters reported the Bank of Japan will consider monetary easing this month and may double its inflation target to 2%.

The trade-weighted index advanced to 75.45 from 75.16.