Sharechat Logo

NZ dollar gives up gains as some traders take profits near 84 US cents

Thursday 3rd January 2013

Text too small?

The New Zealand dollar, which soared along with stocks on Wall Street and in Europe on the US fiscal cliff deal, gave up some of its gains as traders sold the currency as it neared 84 US cents.

The kiwi dollar recently traded at 83.16 US cents from 83.73 cents in Asian trading yesterday, having reached as high as 83.92 cents overnight. It was at 82.76 cents before news of the deal in Washington came through. The trade-weighted index fell to 74.46 from 74.98.

US Treasuries sold off and equity markets on both sides of the Atlantic rallied on the first day of trading in 2013, buoyed by a US budget agreement that eliminated tax increases and spending cuts that might have tipped the world's biggest economy into recession.

"There's clearly some profit taking kicking in," Richard Franulovich, a senior currency strategist at Westpac Banking Corp in New York. "There's no specific kiwi-negative news."

The kiwi dollar may not fall much further, with "solid demand" from 81.50 US cents, he said.

The local currency hasn't exceeded 84 US cents since Dec. 19. It didn't move much after dairy product prices rose 2 percent in the first GlobalDairyTrade auction of 2013, recovering losses through the tail-end of last year.

The New Zealand dollar slipped to 79.10 Australian cents from 79.87 cents and rose to 72.30 yen from 73.02 yen. It eased to 51.08 British pence from 51.20 pence and was little changed at 63.02 euro cents.

(BusinessDesk)

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  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:

Booster tests waters with NZX listing of private property trust
Liquidation can be sought on small debts, appeal court finds
House price inflation rekindles but low sales volumes suggest caution
Liquidators estimate $16m shortfall from Stanley-Tallwood collapse
Manufacturing contraction extends into August
House price inflation rekindles but low sales volumes suggest caution
13th September 2019 Morning Report
Tamarind halts Tui drilling; OMV assesses options
NZ weaker as ECB package, inflation data lifts greenback
MARKET CLOSE: Z Energy, Synlait crash on earnings downgrades

IRG See IRG research reports