Robert Rennie News
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New Zealand’s dollar climbed versus most of its major peers before data forecast to show building permits rose to a five-year high, after the central bank said a housing boom could force it to raise interest rates.
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The won fluctuated near its lowest level in more than eight months as investors judged recent declines were excessive and foreign funds sold shares amid tensions with North Korea. Government bonds fell.
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Australia’s dollar held a rebound from a three-week low against its New Zealand counterpart as traders pared bets for interest-rate cuts after retail sales in the larger nation climbed by the most in more than three years.
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Even after the biggest drop of any major currency in the first two months of the year, the pound is still overvalued as both Pacific Investment Management Co. and hedge fund FX Concepts LLC bet it will fall further.
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The euro traded 0.3 percent from the lowest in almost four months against the dollar after the Cypriot parliament voted down a bank-deposit levy needed to secure a bailout, risking renewed tumult in the currency bloc.
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The euro traded 0.4 percent from the weakest level in 11 months against the dollar amid concern Europe’s sovereign-debt crisis will drive up borrowing costs for Spain at a bond auction today.
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The euro fell against the yen, following yesterday’s biggest drop since June, amid corruption allegations against Spanish Premier Mariano Rajoy and uncertainty ahead of Italian elections this month.
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The euro weakened against the dollar, falling toward a three-week low, as European leaders said Greece’s referendum on a bailout deal will determine whether it will stay in the 17-nation currency union.
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The Australian dollar reached the highest since the currency was freely floated in 1983 as U.S. data spurred speculation global growth is gathering momentum, boosting demand for currencies with higher-yielding assets.
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The Australian dollar climbed to its highest level in two weeks and government bonds fell as speculation Spain is closer to requesting a sovereign bailout spurred appetite for riskier assets.
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