Currency: NZ dollar partially recovers from battering

The New Zealand dollar found support above US64c today after hitting a 21 month low against the US dollar yesterday.

The kiwi was buying US64.22c at 5pm today, up from the low of US63.22c it hit yesterday after the release of weaker than expected retail sales data. This compared to US63.30c at 5pm yesterday.

The kiwi was also slightly stronger against the Australian dollar after hitting a two year low yesterday. By 5pm today it was buying A86.95c from yesterday's low of A86.36c.

The weak retail sales data reinforced economists' views the Reserve Bank is likely to cut interest rates before the end of the year, despite RB governor Alan Bollard saying last week he expects no easing this year.

Next week's current account data -- expected to show a deficit around 9 per cent of GDP -- could re-ignite kiwi selling.

The US dollar was on the back foot today after the release of data showing a plunge in US retail sales in February and a record current account deficit in the fourth quarter.

Influential consulting group Medley Global Advisors released a report which said the Federal Reserve was likely to raise rates to 4.75 per cent but any tightening beyond that was far less assured.

This prompted financial markets to pare back their bets that the Federal Open Market Committee would take US interest rates to as high as 5.25 per cent.

5pm today 5pm Tuesday

NZ dlr US64.22c US63.30c
NZ dlr/Aust dlr A86.95c A86.38c
NZ dlr/euro 0.5342 0.5292
NZ dlr/yen 75.44 75.06
NZ dlr/stg 36.76p 36.50p
NZ TWI 66.05 65.43
Australian dollar US73.89c US73.30c
Euro/US dollar US1.2022 US1.1965
US dollar/yen 117.49 118.56

- NZPA