The New Zealand dollar continued to pull away from yesterday's more than one-month low, recovering to above 71USc as the US dollar gave back more of last week's gains.By 5pm, the kiwi was buying 71.02USc, up from 70.37USc late yesterday afternoon and afte
The New Zealand dollar continued to pull away from yesterday's more than one-month low, recovering to above 71USc as the US dollar gave back more of last week's gains.
By 5pm, the kiwi was buying 71.02USc, up from 70.37USc late yesterday afternoon and after dropping below 70USc – briefly – for the first time in more than a month yesterday.
However, it was a touch weaker against the Australian dollar to 78.77Ac, from 78.96Ac late yesterday. The kiwi had fallen to a three-and-a-half-month low of around 78.60Ac earlier today.
Concerns about the US economy's recovery and the global economy prompted investors to sell down the US dollar, which neared a fresh 15-year low against the Japanese yen today.
The greenback was at ¥85.32 this afternoon, down from ¥85.82 yesterday, and closing in on last week's low of ¥84.72 yen level.
In contrast, the NZ dollar rose to ¥60.60 from ¥60.39. The kiwi also firmed to €0.5529 from €0.5501, and to 45.31p from 45.11p. As a result, the trade weighted index rose to 66.20 from 65.91.
BNZ markets strategist Mike Jones said a plunge in global bond yields had boosted the relative yield advantage of the kiwi that, combined with a modest recovery in equity markets and risk appetite, helped the NZ dollar recoup earlier losses against the US currency.
Investors were awaiting a pile of US data, including July housing starts, which may indicate further weakness in the US economy, and in turn prompt another sell-off in shares.
Data yesterday showed subdued regional manufacturing and plunging home building sentiment in the world's largest economy.
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