NZ dollar slips vs greenback, gains on euro

The New Zealand dollar eased against the greenback overnight but gained on the euro, which fell broadly as the Spanish central bank's takeover of a small savings bank added to worries about economic growth in the euro zone.

Around 8am today, the kiwi was buying US67.19c, down from US67.39c at 5pm yesterday, and was up to 0.5426 euro from 0.5385.

BNZ strategist Mike Jones said the NZ dollar had received some fleeting support yesterday from a modest recovery in Asian stock markets.

That followed reports China was slowing the implementation of property taxes in response to recent concerns about global growth.

Easing fears about a slowing in Chinese demand also provided a boost to commodity prices, helping underpin a brief push towards US68c.

But the NZ dollar was unable to extend gains overnight against the US currency, Jones said.

The focus of markets quickly returned to the euro and the headwinds posed to global economic recovery from the European sovereign debt crisis. The euro resumed its slide against the greenback and global stocks either flat-lined or fell.

The backdrop was not supportive for a growth-sensitive currency such as the NZ dollar, which was soon sliding back, said Jones.

The kiwi was also down to A81.06c at 8am from A81.27c at 5pm, and was slightly lower at 60.71 yen at the local open.

- NZPA