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NZ Dollar In Broad Range As Investors Cautious On Risk

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 23 NZPA - The New Zealand dollar bounced around in a broad range under US56c overnight as nagging worries about the global financial system kept investors from taking on too much risk.

A modest recovery in Japanese exports helped the yen, while United States equities were higher for part of the session, eroding any safe-haven bid for the US currency, although ending the session down.

By 8am the NZ dollar was buying US55.51c, little changed from its level at 5pm yesterday after having dropped to around US55.35c during the night and climbed to near US56c.

The kiwi dropped against the Australian dollar to A78.59c at 8am from A78.86c at the local close, and was down to 0.4271 euro at the local open from 0.4296 at 5pm.

The NZ dollar also eased to 54.40 yen from 54.58, while the trade weighted index slipped to 55.65 at 8am from 55.78 at 5pm.

The kiwi did strengthen against the British pound, which plunged broadly after the government forecast a surge in borrowing this year. By 8am the NZ dollar was at 38.34p from 37.99p at the local close.

BNZ Capital currency strategist Danica Hampton said the NZ dollar against the greenback was largely caught up in the global melee last night.

But it was also worth noting that downward pressure on New Zealand interest rates in recent weeks added to the case for a weaker kiwi against the US currency.

NZPA WGT Reuters mjd nb

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