NZ dollar settles after tumble on double-dip comments
The kiwi reverted to range-trading mode after yesterday's big drop in reaction to statements by Finance Minister Bill English.
The kiwi reverted to range-trading mode after yesterday's big drop in reaction to statements by Finance Minister Bill English.
The New Zealand dollar settled back into range-trading mode today after falling yesterday when Finance Minister Bill English spoke about the possibility of a double-dip recession.
By 5pm the NZ dollar was at 77.07USc, down slightly from 77.27USc at 8am. It had risen from 77.13USc at 5pm yesterday.
The euro was firm. Reuters reported that central banks are switching currencies, buying euro with dollars bought during intervention.
The NZ dollar fell to €0.5622 by 5pm from €0.5629 at 8am and €0.5652 at 5pm yesterday.
The US dollar was broadly weaker after Federal Reserve chairman Ben Bernanke said US unemployment remained too high, suggesting the Fed would push on with its $US600 billion ($NZ816 billion) stimulus programme.
BNZ currency strategist Mike Jones said the NZ dollar was "blindsided" yesterday by the downbeat comments from Mr English.
Overnight, currency markets struggled for direction somewhat, he said.
A mild cooling in investors' risk appetite tended to dampen demand for growth sensitive currencies such as the NZ and Australian dollars.
A bout of profit taking had seen global equity markets post modest losses, while sentiment generally lost some steam after Ireland announced it would postpone capital injections into its banks, Mr Jones said.
The Australian dollar was slightly weaker today after employment data failed to change expectations that the Reserve Bank of Australia will keep rates on hold for a few months.
The NZ dollar rose to 76.42Ac at 5pm from 76.33Ac at 8am and 76.08Ac at 5pm yesterday.
It was at ¥63.63 from ¥63.56. The trade weighted index was 68.46 at 5pm from 68.51 at the same time yesterday.