The New Zealand dollar ended its domestic session recovered from a dip to near 70USc.Dealers said risk aversion continues to be the dominant sentiment in the market at the moment.The NZ dollar was 70.43USc at 5pm from 70.36USc at 8am and 70.99USc at 5pm y
The New Zealand dollar ended its domestic session recovered from a dip to near 70USc.
Dealers said risk aversion continues to be the dominant sentiment in the market at the moment.
The NZ dollar was 70.43USc at 5pm from 70.36USc at 8am and 70.99USc at 5pm yesterday.
Dealers attributed a dip to 70.14USc around 1pm local time to a run lower by the Australian dollar, rather than a speech on monetary policy by Reserve Bank governor Alan Bollard.
In a speech to the Canterbury Employers' Chamber of Commerce, Dr Bollard said New Zealand's inflation targeting monetary policy had proven flexible, durable and successful, but economic growth required more than this.
The NZ dollar had risen to around 70.60USc but fell from that level when the Australian dollar was sold quite aggressively, one dealer said.
He attributed the selling to risk aversion and a shift in sentiment about the prospects of further rate rises in Australia.
The euro also hit a nine-month low against the yen and a six-month low against the dollar as concerns about Greece's fiscal situation intensified.
Weakness in the euro has also affected sentiment for high risk currencies such as the NZ dollar.
The Australian dollar was 89.26Ac at 5pm from 90.15Ac at same time yesterday. The Australian dollar market was seen by dealers as having potential for a squeeze on those holding short, or previously sold, positions.
The NZ dollar market may be affected by a public holiday in Auckland on Monday but the market operates normally.
Against the Australian dollar the NZ dollar was 78.93Ac at 5pm from 78.73Ac yesterday. It was worth €0.5052 from €0.5062, and ¥63.38 from ¥64.11.
The trade weighted index dropped to 64.72 from yesterday 64.97.
