NZ dollar eases but finishes off lows
The New Zealand dollar came under pressure today, along with a number of other currencies, but it ended off lows.
The New Zealand dollar came under pressure today, along with a number of other currencies, but it ended off lows.
The NZ dollar was at US81.78c at 5pm and it traded as low as US81.44c, down from US82.03c at 8am. It was at US81.85c at 5pm yesterday.
Comments by Federal Reserve Chairman Ben Bernanke bolstered expectations that US interest rates will remain low. Bernanke gave a sombre assessment of the US economy, acknowledging that growth has slowed.
"After those Bernanke comments Asia was selling everything. The euro, kiwi and aussie were all weaker during the session," said Murray Hindley, chief foreign exchange dealer at ANZ.
"It has just been a complete risk-off move," he said.
The US dollar lost ground against the yen as the yen was bought broadly as the general risk-averse mood prevailed in Asia. Stocks markets were weak in Asia, though the New Zealand market posted gains.
Investors are wary after Bernanke's comments and before the European Central Bank meeting on Thursday.
The NZ dollar was little changed at A76.67c at 5pm from A76.60c at 8am.
The Reserve Bank of Australia's decision yesterday to keep interest rates steady at 4.75 percent had been widely expected, but the accompanying statement had been noticeably less hawkish than expected, Mike Jones, strategist at BNZ said.
The NZ dollar was at 0.5577 euro from 0.5586 euro at 8am and 0.5602 at 5pm yesterday, and was at 65.43 yen from 65.75 yen yesterday. The trade weighted index was 70.02 from 70.15 yesterday.
NZPA
Wed, 08 Jun 2011
Wed, 08 Jun 2011
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NZ dollar eases but finishes off lows
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