NZ dollar rebounds from recent lows

The New Zealand dollar last night reached its lowest level against the greenback in 1-1/2 weeks, and its lowest level against the yen in 3-1/2 weeks, amid concerns over fraud charges against Goldman Sachs.

But the kiwi then recovered the lost ground to be at US70.97c around 8am, from US70.86c at 5pm yesterday, after dropping to around US70.50c.

The NZ dollar was also at 65.57 yen at the local open, up from 65.21 at 5pm, and after slipping below 64.80 yen.

BNZ strategist Mike Jones said the kiwi spent the 24 hours to 8am tracking a sideways US70.50c to US71.10c range, and overnight held its own against a US dollar that made broad-based gains.

Following the Goldman Sachs fraud charges, markets were a little wary of cases being brought against other banks. At the same time, the Icelandic volcano eruption had spurred fears about the European outlook, with more than 300 airports closed and several large European manufacturers talking about halting production, Jones said.

Heightened fears about the global backdrop increased the safe haven allure of the US dollar, which strengthened against nearly all the major currencies overnight.

Today, all eyes would be on March quarter inflation figures due at 10.45am.

The NZ dollar opened locally slightly lower against the Australian dollar at A76.91c from A77.04c at 5pm, and was barely changed at 0.5262 euro. The trade weighted index was also little changed at 65.77 at 8am from 65.75 at 5pm.

- NZPA