The New Zealand dollar fell against the Japanese yen and the US dollar, rising versus the euro at the same time, after the announcement of the â¬100 billion rescue package for Spain.
Initially, the reaction to the announcement was very positive. The optimistic feelings among Forex traders proved to be short-lived and concerns for the future of the eurozone are mounting again. According to reports, the International Monetary Fund refrained from participating in the bailout, signaling that the international community is skeptical about prospects for the euro-area. Prime Minister Mariano Rajoy admitted that Spain is going to face hard times (though, the situation there is not pretty even now).
Market analysts were rather dazed by a short lifespan of positive mood among Forex traders. It is true that not may believed in long-lasting optimism, but it was still somewhat unexpected to how fast see any positivity was evaporated from the FX market.
NZD/USD was down from 0.7766 to 0.7682 and NZD/JPY slumped from 61.82 to 60.88 as of 23:51 GMT today. EUR/NZD traded near 1.6230 after falling from 1.6254 to 1.6152 — the lowest level since May 2.
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