The Australian dollar scaled a fresh all-time high against the wobbly euro and the kiwi climbed to a three-month peak on Friday as worries Europe's debt problems will drag on for many more months drove long-term yields to record lows. Liquidity was thin with dealing rooms winding down early for year-end celebrations, though traders reported interest from Japanese bidders.
That helped nudge the Australian dollar up to $1.0157 from $1.0135 in New York. The Aussie looked set to end the year almost where it started against the greenback, having showed a remarkable resilience to offshore events. It was down 0.7 percent for the year, following a hefty 14 percent gain in 2010.
The 10-year contract jumped 0.04 points to 96.285, having scaled an all-time record of 96.300. Its implied yield of 3.715 percent was far below the overnight cash rate of 4.25 percent. The New Zealand dollar edged higher to $0.7728, from $0.7713 in New York and looked poised, just like the Aussie, to end the year in much the same position as it started. It is fractionally lower for the year, having gone as far as $0.8842 and as low as $0.7125, tracking wild swings in risk appetite. In 2010, it gained 8 percent.
Against the euro, the kiwi jumped to levels not seen since late-September. The single currency fell to NZ$1.6748, and the cross rate is down around 3 percent for the year. Australia and New Zealand markets will reopen on January 3 and 4 respectively.
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