Dollar steady in face of caution

The New Zealand dollar traded steadily yesterday as it benefited from stronger equity markets around the world.

By 5pm, the kiwi was at US57.67c, up a little from US57.40c late on Monday and close to its session high of US57.84c.

The currency lost a little ground against the aussie, trading at A77.87c late yesterday compared with A78.05c on Monday as the Australian dollar made some gains.

The Reserve Bank of Australia left interest rates on hold at 3 per cent, as expected but left the way open for further cuts if needed.

It acknowledged a weak near-term outlook for the global economy but noted "further signs of stabilisation in several countries".

Investors grew cautious ahead of stress test results on banks in the United States, with news that about 10 were likely to need more capital. Results are due tomorrow.

That note of caution followed a big equities rally, as global markets surged on growing signs of recovery in economies such as China, India and the US.

- NZPA