The New Zealand dollar erased its earlier gains today on concerns that talks among US politicians to avoid the fiscal cliff were unsuccessful so far. The currency went higher against the Japanese yen.
Fears that the so-called fiscal cliff will push the United States into recession still dominate the Forex market. Treasury Secretary Timothy Geithner said that he will take “extraordinary measures” to postpone a US default into early 2013, while President Barack Obama and the Congress are preparing to make a final attempt to make a deal for avoiding a crisis. Losses of the New Zealand currency were limited amid speculations that China’s manufacturing continues to grow with faster pace.
NZD/USD was at about 0.8191 as of 14:27 GMT today, following the earlier advance from 0.8195 to 0.8224. NZD/JPY went up from 70.08 to 70.39.
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