The New Zealand dollar rose to its highest in almost two weeks against the euro on speculation European Central Bank chief Mario Draghi may add further stimulus in coming months to spur growth, lessening the lure of the common currency.
The euro has declined 1.7 per cent against the kiwi since weaker euro-zone inflation figures last Thursday fuelled speculation the ECB will need to provide further stimulus to the regional economy to boost growth.
The bank meets this Thursday, and money markets, which were already pricing in the possibility of looser ECB policy in the coming year, now reflect an outside chance of a move in the next few months, Reuters said.
"Euro is under pressure as we go into the ECB decision Thursday," Sharon Zollner, senior economist at ANZ New Zealand, said in a note. "The Draghi press conference will be a driver for the euro."
In Asia today, traders will be eyeing a report on Australian retail sales for September, due 1:30pm New Zealand time. Other scheduled for Australia today include job advertisements, house prices, and an inflation indicator.
