NZ dollar at two-month low vs euro

Photo / Dean Purcell

The New Zealand dollar fell to a two-month low against the euro, which was boosted by stronger-than-expected European data.

The kiwi dropped close to 0.5430 euro early on Saturday, and by 8am today was only slightly higher at 0.5441, down from 0.5463 at 5pm on Friday.

An unexpected rise in the German Ifo business climate index beyond a three-year high lifted the euro, despite lingering euro zone debt worries and record highs in the spreads of Irish and Portuguese bond yields over their German counterparts.

"The Ifo data reversed some of the euro negativity," said Jeremy Stretch, head of currency strategy at CIBC in London.

Demand for the greenback was hurt as reports on durable goods orders in the United States and new home sales for August were considered soft and reinforced the view the Federal Reserve may provide additional monetary easing to help the economy.

In its morning briefing notes, ANZ said the NZ dollar had found good support above the US72.60c to US72.70c zone.

The kiwi was lifted by the surging euro which also carried the Australian dollar along for the ride.

The NZ dollar lifted to US73.39c at 8am today from US72.78c at 5pm on Friday, and was little changed against the aussie at A76.52c at 8am.

The kiwi slipped to 61.79 yen at 8am from 61.98 at 5pm on Friday, while the trade weighted index edged up to 66.41 from 66.39.

- NZPA