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NZ Dollar Holds Steady Despite Growing Caution

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, May 5 NZPA - The New Zealand dollar traded steadily today, as it benefited from stronger equity markets around the world.

By 5pm, the kiwi was at US57.67c, up a little from US57.40c late yesterday afternoon and close to its session high of US57.84c.

The currency lost a little ground against the aussie, trading at A77.87c late this afternoon compared with A78.05c yesterday as the Australian dollar made some gains.

Late this afternoon, the Reserve Bank of Australia (RBA) left interest rates on hold at 3 percent, as expected, but left the way open for further cuts if needed.

The RBA acknowledged a weak near-term outlook for the global economy but noted "further signs of stabilisation in several countries".

Investors grew cautious ahead of stress test results on banks in the United States, with news that about 10 were likely to need more capital. Results are due on Thursday.

That note of caution followed a big equities rally, as global markets surged on growing signs of recovery in economies such as China, India and the US.

In New Zealand, it was a quiet day on the data front today but due later in the week are official employment figures, wages data and government accounts.

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