Currency: Kiwi retreats from six-month high

The New Zealand dollar retreated overnight after hitting a new six-month high against the greenback around US61.25c during the evening.

The kiwi, which fell against a range of currencies, was down to US60.17c by 8am today.

ANZ said the NZ dollar's extension past resistance at US60.50c and briefly into territory above US61c, found plenty of willing sellers and was reversed easily in the overnight market.

Fortunes of the US dollar also marginally improved with profit taking.

By the local market open today the kiwi had edged down against the Australian dollar from 5pm yesterday to A79.30c.

The NZ dollar was more clearly down against the European and Japanese currencies, buying 0.4429 euro at 8am from 0.4470 at 5pm and down to 58.60 yen from 60.08. The trade weighted index was down to 58.50 at 8am from 59.15 at 5pm.

The broad rebound in the US dollar from a four-month low came as a global decline in stock prices boosted the greenback's safe-haven appeal and investors bought the currency after a sharp sell-off last week.

Renewed risk aversion also boosted demand for the Japanese yen, which gained versus the euro and the greenback, as well as against higher-yielding currencies such as the NZ dollar.

The US and Japanese currencies are often perceived as safer assets in times of market volatility.

- NZPA