New Zealand: New Zealand dollar rises after falling to a 15-month low
June 20, 2012
By 22 June, the New Zealand dollar traded at 0.79 USD per NZD, which was 4.4% stronger than the same day of the previous month. The figure, however, follows on an 8.0% depreciation recorded in the month of May, when the currency traded at 0.75 USD per NZD, the lowest level seen since February 2011. On an annual basis, the kiwi was 8.6% weaker compared to May last year. The New Zealand dollar fell sharply in May, as risk aversion heightened due to a deteriorating situation in the Eurozone, particularly in Greece, where polls had shown that the anti-bailout Syrizia party may win the 17 June elections. However, the New Zealand dollar has been gaining momentum following the Greek election result, which gave pro-austerity parties a majority in parliament, allowing them to form a new governing coalition.
Author: Ricardo Aceves, Senior Economist