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Surging Equities Help Boost NZ Dollar

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, May 19 NZPA - A returning appetite for risk helped buoy the New Zealand dollar today.

By 5pm, the kiwi was at US59.71c, up from US58.60c late yesterday afternoon and near the top of its range today.

Against the Australian dollar, the kiwi slipped to A77.87c from A78.30c late yesterday.

The kiwi made up ground against the euro, yen and sterling.

A more than 200-point surge in the Dow Jones industrial average, which closed up nearly 3 percent, and stronger markets throughout Asia were behind the kiwi's rally, ANZ Institutional Bank chief foreign exchange dealer Murray Hindley said.

Comments from the Reserve Bank of Australia helped add to the sentiment, with Governor Glenn Stevens' words today reinforcing expectations that rates would stay on hold.

However, it was strength in equities that provided the lead.

"It's really about people comfortable with risk back on the table," Mr Hindley said.

The kiwi was likely to run into sellers around US60c and find support around US59.30c overnight.

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