NZ Dollar Falls on Europe’s Problems, Pares Losses on US QE

The New Zealand dollar fell today on renewed concerns about debt problems in countries of Europe, particularly Spain. The losses were trimmed as anticipation of a third round of quantitative easing from the US Fed lifted traders’ mood.
The yield on Spanish bonds maturing in 10 years reached 7.04 percent yesterday. Greece, Ireland and Portugal have required a bailout after their benchmark borrowing costs rose past 7 percent. That means Spain may be next European country to require rescue. The Federal Reserve will announce its monetary policy today and many market participants hope for new stimulating measures.
NZD/USD was at about 0.7975 as of 9:20 GMT today after it fell from 0.7979 to 0.7945. NZD/JPY traded at 62.92, following the earlier fall from 62.96 to 62.60.

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