RTTN: NZ Dollar Climbs From Multi-day Lows Against Greenback, Yen And Euro
(RTTNews) - Friday, the New Zealand dollar recovered from early Asian session's 9-day low against its U.S. and Japanese counterparts and a 2-day low versus the European currency shortly after media reports said that Pakistan's government denied a coup had taken place in the country, reviving demand for higher yielding assets.
Media reports said Pakistan's government this morning dismissed rumours of a coup in the country as the fallout from a supreme court verdict continued to rock President Asif Ali Zardari's government.
Political tension has risen in Pakistan since the Supreme Court on Wednesday struck down an amnesty that protected President Asif Ali Zardari, several of his ministers and thousands of others from corruption charges.
The prospect of political turmoil comes as the United States is stepping up calls on Pakistan to tackle Afghan Taliban in lawless border enclaves, where suspected U.S. drones on Thursday killed 12 fighters, Pakistani security agents said.
"The National Accountability Bureau (NAB), Pakistan's top anti-corruption agency, said it was reopening hundreds of cases after the court quashed a legal amnesty introduced by the former president Pervez Musharraf two years ago" reports said.
Against the US dollar, the New Zealand currency gained ground after hitting a 9-day low of 0.7069 during early Asian deals on Friday. At 9:50 pm ET, the kiwi-dollar pair reached a high of 0.7135, compared to 0.7105 hit late New York Thursday. The next upside target level for the pair is seen around 0.729. As of now, the pair is worth 0.7129.
The New Zealand dollar that closed Thursday's North American session at 2.0201 against the European currency slipped to a 2-day low of 2.0280 during today's early Asian trading. Thereafter, the kiwi reversed its direction and climbed to 2.0187 against the euro at 9:50 pm ET. The euro-kiwi pair is currently trading at 2.0206 with 2.022 seen as the next target level.
The NZ dollar that touched a 9-day low of 62.99 against the Japanese yen during Friday's early Asian trading. At 9:50 pm ET, the kiwi-yen pair hit a high of 64.12, compared to Thursday's closing value of 63.94. If the pair gains further, 64.9 is seen as the next target level. The pair is presently trading at 63.76.
Today, the policy board of the Bank of Japan unanimously decided to retain the overnight call rate at 0.10%, in line with market expectations. The last change in the rate was a 0.10% cut in interest rates at the December 2008 meeting.
