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NZ Dollar Up Then Falls Away Against Majors

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, June 17 NZPA - The New Zealand dollar had a choppy night, climbing firmly then falling away against the greenback, yen and euro.

By 8am the NZ dollar was buying US63.13c, after climbing from a low point around US62.40c early yesterday afternoon to around US63.90c shortly after midnight, and then falling away again.

The US dollar came under pressure after comments from Russia suggesting a need for a global reserve currency other than the greenback.

BNZ Capital senior strategist Danica Hampton said that along with the generally weaker US dollar helping underpin the kiwi, some commentaries also mentioned that Asian sovereign accounts showed an appetite for the NZ and Australian dollars overnight.

But the kiwi's strength against the US currency was short-lived, with the greenback recovering a little after the joint communique from a BRIC (Brazil, Russia, India and China) summit did not bag the US dollar, Ms Hampton said.

Weakness in US equities amid ongoing concern about the speed and timing of global recovery, and a pick up in risk aversion helped take the shine of growth sensitive currencies such as the NZ dollar.

The NZ dollar was up to 0.4563 euro at 8am from 0.4546 at 5pm yesterday, and lifted slightly to 60.89 yen from 60.71.

Against the aussie, the NZ dollar climbed to its highest level in a fortnight around A79.70c yesterday evening then eased away to A79.45c at today's local open. The trade weighted index was 60.01 at 8am from 59.82 at 5pm yesterday.

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