The New Zealand dollar rebounded from a six-year low as China intervened in the market to stabilise its currency, which had declined sharply following moves aimed at letting it trade more freely.
The kiwi advanced to 66.19 US cents at 8am in Wellington, from 64.86 cents at 5pm yesterday after it earlier touched a low of 64.65 cents.
Against the Chinese currency, known as the yuan or the renminbi, the kiwi rose to 4.2259 from 4.1689 yesterday. The trade-weighted index rose to 71 from 70.19 yesterday.
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China's central bank intervened in the market to prop up its currency in the final moments of trading yesterday after it slumped to a four-year low following a policy change to try and allow the currency to trade more in line with market forces, the Wall Street Journal reported.