Kiwi falls against euro

The New Zealand dollar has fallen to its lowest level in about 11 months against the euro as steady economic growth and improving investor confidence in the economic bloc saw its currency strengthen against the greenback.

The kiwi fell to 62.11 euro cents as at 8.30am on Wednesday in Wellington from 62.59c late Tuesday. The local currency rose to US68.86 cents from US68.61c.

Investor sentiment has risen in Germany and European Union GDP has come in at a predicted 0.5 per cent in the first quarter.

The euro rose to a five-month high against the greenback amid ongoing uncertainty about the Trump administration's ability to enact policy change and questions about the pace of interest rate hikes by the Federal Reserve, contrasting with more upbeat sentiment for Europe.

"The EUR/USD has risen as doubts on the ability of the Trump administration to push through reforms has increased and the backdrop for Europe looks more stable - both politically the economically," said ANZ rural economist Con Williams.

The kiwi dollar didn't move much after dairy product prices rose at the GlobalDairyTrade auction overnight, increasing for the fifth consecutive time, amid solid demand for fat products.

The GDT price index gained 3.2 per cent from the previous auction two weeks ago.

On Wednesday, traders will be watching the release of the first-quarter producer price index, while across the Tasman, the Westpac Consumer Confidence survey for May is released today and in Japan, March industrial production.

On Wednesday morning, the kiwi fell to 92.61 Australian cents from A92.84c late Tuesday and was little changed at 53.29 British pence. It slipped to 77.81 yen from 78.09 yen and fell to 4.7383 yuan from 4.7417 yuan.

The trade-weighted index was at 74.71 from 74.86.

-AAP


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