NZ Dollar at Record vs. Euro as US Employers Add Jobs
The New Zealand dollar climbed today, reaching the all-time high versus the euro, after positive employment data from the United States bolstered risk appetite among Forex traders, making them prefer higher-yielding currencies.
US employment data overshadowed the problems of Europe for a day and provided a major boost for currencies tied to growth. The United States has its share of problems, but traders prefer to look at a brighter side of things in the USA as they have enough negativity from Europe. That may change in a time, but for now positive indicators and low interest rates make a good economic environment for riskier assets.
Commodity and stocks markets also reacted very positively to the US jobs growth, adding to appeal of the New Zealand currency. The Thomson Reuters/Jefferies CRB Index of commodities advanced 0.5 percent. The Standard & Poor's 500 Index added as much as 1.3 percent.
NZD/USD closed at 0.8357 after opening at 0.8331 and reaching 0.8378 - the highest level since September 8. EUR/NZD closed at 1.5737 after it opened at 1.5764 and dropped to the all-time low of 1.5650. NZD/JPY closed at 63.92, following the advance from 63.47 to 64.11 - the highest since October 31.