Oct. 6 (Bloomberg) -- The Australian and New Zealand dollars rose for a third day versus the U.S. currency as global stocks rallied, increasing demand for higher-yielding assets.
Both South Pacific currencies were supported after the European Central Bank said it will reintroduce loans to banks in an effort to buoy crisis-ridden markets. The Standard & Poor’s 500 Index rose for a third day and commodities advanced.
“The crazy jigsaw that is the European debt debacle is starting to see a plan bubbling around in the background and that should be positive for risk,” said Chris Weston, an institutional dealer at IG Markets in Melbourne.
Australia’s dollar rose 0.4 percent to 96.97 U.S. cents at 11:36 a.m. in New York, from 96.59 yesterday, when it rose 0.9 percent. The currency fetched 74.25 yen from 74.17. New Zealand’s dollar added 0.2 percent to 76.78 U.S. cents after advancing 0.8 percent to 76.62 yesterday. It rose 0.1 percent to 58.82 yen.
The MSCI World index of stocks rose 1.8 percent and the S&P 500 Index climbed 0.8 percent. The Thomson Reuters/Jefferies CRB Index of raw materials advanced 0.9 percent.
ECB officials left their benchmark rate at 1.5 percent, as predicted by 41 of 52 economists in a Bloomberg News survey. President Jean-Claude Trichet said the ECB will resume covered- bond purchases and reintroduce year-long loans for banks as the sovereign-debt crisis threatens to freeze money markets.
--With assistance from Masaki Kondo in Tokyo and Catarina Saraiva in New York. Editors: Paul Cox, Dennis Fitzgerald
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