NZ dollar gains against greenback hit by poor US data
After dipping below 68USc for the first time in three weeks, the New Zealand dollar finished the week back above 69USc.It was at 69.40USc at 5pm today from 69.02USc at 8am and 68.10USc at 5pm yesterday. It fell to 67.91USc on Thursday but the recovery fro
After dipping below 68USc for the first time in three weeks, the New Zealand dollar finished the week back above 69USc.
It was at 69.40USc at 5pm today from 69.02USc at 8am and 68.10USc at 5pm yesterday. It fell to 67.91USc on Thursday but the recovery from that level fell short of the 71.50USc early on Monday.
The week has been dominated by fears about funding of European banks and fears that economic growth will slow in China and the US. They subsided somewhat today and the NZ dollar firmed throughout the session.
A compromise deal between miners and the Australian government on the issue of tax helped the Australian dollar late this week.
The euro also surged on Thursday in a wild short-covering rally and equity markets were firm on Friday. The US dollar was on the defensive after weak data and as investors waited for further data.
BNZ said that since the global financial crisis began to bottom out around March last year the NZ dollar has been one of the strongest performing G10 currencies. It has been trading well above its long-run equilibrium around 61USc.
BNZ said the NZ dollar could hold up a bit longer as New Zealand economic growth should outstrip US growth for the next six to nine months but it could begin turning lower from around the end of this year.
The NZ dollar was at €0.5546 at 5pm from €0.5575 at the corresponding time yesterday, but strengthened to ¥61.01 from ¥60.10.
Against the Australian dollar, the NZ dollar rose to 81.86Ac from 81.47Ac yesterday, while the trade weighted index rose to 66.48 from 66.00 yesterday.
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.