Dollar stable around US67c

The New Zealand dollar traded near the US67c figure today as concerns about the global economy continued to dampen demand for risky currencies.

By 5pm the NZ dollar was buying US66.96c, similar to its US66.89c level at 5pm yesterday.

The US dollar was firm today in Asia as investors continued to view it as a safe haven currency. Investors also continued to watch equity markets, which were mostly weak in Asia.

BNZ Capital senior strategist Danica Hampton said concern about the strength and timing of an anticipated global recovery had seen equity markets plunge worldwide.

Escalating concern about the global backdrop had seen investors ditch growth sensitive currencies such as the NZ dollar in favour of the relative safety of the US dollar, Ms Hampton said.

There was no data on the economy in New Zealand today but investors had a look at minutes from a Reserve Bank of Australia (RBA) meeting in August.

These revealed an expectation that Australian interest rates will have to rise from record lows as the economy rebounds, but also concern that an early move could shake consumer confidence and scupper a recovery.

The NZ dollar rose against a weak euro to 0.4747 euro by 5pm from 0.4728 at the same time yesterday.

The NZ dollar rose to 63.47 yen from 63.26 yesterday.

Against the Australian dollar the NZ dollar was little changed at A81.34c, while the trade weighted index rose 62.74 from 62.62 yesterday.

Reuters currency rates:

5pm today 5pm yesterday

NZ dlr/US dlr US66.96c US 66.89c

NZ dlr/Aust dlr A81.34c A81.38c

NZ dlr/euro 0.4747 0.4728

NZ dlr/yen 63.47 63.26

NZ dlr/stg 40.92 40.66

NZ TWI 62.74 62.62

Aust dlr/US dlr 82.31 82.19

Euro/US dlr 1.4101 1.4148

US dlr/yen 94.83 94.56

- NZPA