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NZ Dollar Retreats From Three Week High

Fuseworks Media
Fuseworks Media

Wellington, Nov 17 NZPA - The New Zealand dollar retreated from three-week highs today as equity markets eased back and doubt emerged about the timing of the next Australian rate rise.

By 5pm the NZ dollar was at US74.69c, having risen to US75.20c in morning trading from US74.29c at 5pm yesterday.

The strength came as the United States dollar fell broadly as a rise in US retail sales failed to change the outlook for US interest rates.

This week traders are also focused on the failure of China and the US to reach an agreement on currencies, suggesting China may not be ready to let the yuan rise against the US dollar.

BNZ Capital strategist Mike Jones said demand for growth-sensitive currencies such as the NZ dollar was encouraged by the US dollar weakness and firming commodity prices.

But the NZ dollar ran out of steam during a relatively quiet session.

"Kiwi is back where we started the day. It strengthened in the morning and in the afternoon session it dribbled off with the slightly softer aussie and euro," said ANZ chief foreign exchange dealer Murray Hindley.

The Australian dollar eased after board minutes indicated the Reserve Bank of Australia (RBA) is in no great hurry to raise official interest rates.

Economists said the decision in December could be a close call.

The NZ dollar rose against the Australian dollar to A80.01c at 5pm from A79.54c yesterday, and was little changed at 66.51 yen.

The trade weighted index rose to 66.37 from 66.08 at 5pm.

The NZ dollar was around three-week highs against the euro at 0.4995 from 0.4967 yesterday.

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