Sharechat Logo

Kiwi recovers from dip on plunging confidence

Friday 1st April 2011

Text too small?

The New Zealand dollar recovered from yesterday's confidence-related dip, to peak slightly above the level it was at when the devastating earthquake hit Christchurch on February 22.

The kiwi climbed to around US76.45c early today, easing to US76.32c at 8am, having climbed from US75.82c at 5pm yesterday.

BNZ currency strategist Mike Jones said the tailwinds of a retreating US dollar and surging global commodity prices had propelled the NZ dollar's rebound.

While the headline results of yesterday's March National Bank Business Outlook - net confidence down to -9 from +34 in February - did not look good, underlying impressions were not that bad, Mr Jones said.

Overnight, encouraging US and European data had inspired optimism in the global outlook, buoying investors' risk appetite.

Real money and speculative appetite for commodity-linked currencies, such as the Australian and NZ dollars, was bolstered, Jones said.

The aussie climbed to a fresh post-float high above US$1.0360, with the NZ dollar rebounding on its coat-tails against the greenback.

The NZ dollar remained within a restricted range against the aussie edging up to A73.64c at 8am from A73.48c at 5pm, and was up to 63.41 yen from 62.65, while being little changed at 0.5375 euro. The trade weighted index was up to 66.78 at 8am from 66.47 at 5pm.

 

NZPA



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report