KEY POINTS:
The New Zealand dollar turned upward today in a move with as much intensity as the moves down.
Unprecedented volatility continued to be the theme in currency markets.
From a US56.14c around 8am the NZ dollar rose as high as US57.98c before settling around US57.08c at 5pm.
BNZ currency strategist Danica Hampton said the currency barely blinked at trade data today. Its leap from lows was simply a reflection of a leap in global equity markets.
After shedding US8c in a week before last night, the kiwi was looking to consolidate and overnight made steady gains up from US54.26c to US55.71c before a bounce kicked in about 7am.
The dollar rose as high as US56.35c from US55c in 90 minutes.
A strong bounce in Asian equity markets late yesterday paved the way for a recovery in European and US equities.
However, it was too early to say the world was a better place, Ms Hampton said.
"Given that it has come so far so fast a bounce wasn't out of the question," she said.
"Worries about a global recession will continue to plague the markets."
At 5pm the NZ dollar was buying 55.20 yen from 54.78 at 8am and against the euro was 0.4492 from 0.4384.
It was still strong against the Australian dollar, trading at A89.45c from A89.91c yesterday.
The trade weighted index stood at 58.14, up from 55.13 late yesterday afternoon.
Currency rates:
NZ dlr/US dlr US57.08c US54.38c
NZ dlr/Aust dlr A89.45c A89.91c
NZ dlr/euro 0.4492 0.4384
NZ dlr/yen 55.20 50.73
NZ dlr/stg 35.66p 35.07p
NZ TWI 58.14 55.13
Australian dollar US63.85 US60.54c
Euro/US dollar 1.2715 1.2407
US dollar/yen 96.76 93.28
- NZPA
