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NZ Dollar Making Up Some Lost Ground

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 14 NZPA - The New Zealand dollar bounced back a little this afternoon having earlier given up week-highs against the greenback.

By 5pm, the kiwi was at US59.10c, little changed from 8am but short of its US59.30c peak early this morning.

The kiwi had climbed strongly during the early hours of the morning on improved appetite for risk, having been at US58.16c before the Easter break at 5pm on Thursday.

Against the aussie, the kiwi was at A81.09c from A81.80c late Thursday afternoon. It was weaker against sterling, but stronger against the euro and yen.

"The improving global outlook and strong gains across equities has seen growth-sensitive currencies like NZD climb against `safe-haven' currencies like USD," said BNZ currency strategist Danica Hampton.

Additional demand from Japan had also boosted the kiwi.

However, domestic factors such as an expected rate cut by the Reserve Bank later this month, and global factors pointed to the kiwi's return to at least US55c in coming weeks, she said.

Today, a small improvement in February retail sales was not enough to dampen expectations of an interest rate cut on April 30.

United States financial markets had made an upbeat return to business on Monday after the long weekend, driving the dollar and yen down and sending the euro and the Australian and New Zealand dollars up, with optimism about China's recovery prospects helping the commodity currencies.

However, the yen gained today as stocks lost momentum ahead of upcoming corporate earnings releases.

NZPA WGT Reuters mfc nb

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