NZ dollar recovers some of weekend fall

File photo / NZ Herald

The New Zealand dollar today recovered some of a fall during the weekend when weak consumer data in the United States and fresh worries about European debt hurt the euro and enhanced the US dollar's safe-haven appeal.

By 5pm today the NZ dollar was at US72.77c from US72.64c at 8am and US73c at 5pm on Friday.

Investors continued to reflect that the Reserve Bank of New Zealand was downbeat about the economic outlook when holding interest rates at its monetary policy statement last week awaiting key economic data this week.

Current account data is due on Wednesday and second quarter gross domestic product data on Thursday.

Westpac argued the NZ dollar market was long and vulnerable to a correction, with global risk appetite finely balanced.

Rankin Treasury said the NZ dollar continued to follow the Australian dollar and the euro.

"The NZ dollar has not yet broken out of the ranges, and therefore exporters would be extremely wary of any move above US74.00c," Rankin Treasury said.

By 5pm today, the NZ dollar was at 0.5566 euro from 0.5560 euro on Friday, and was A77.10c from A77.27c on Friday evening, while falling to 62.35 yen from 62.60.

The trade weighted index fell to 66.89 at 5pm from 67.04 at the same time on Friday.

- NZPA