The New Zealand dollar closed marginally weaker yesterday, belying major volatility as it bounced within a range exceeding one US cent.
The kiwi finished at 40.24USc, trading from 40.04c to 41.17c.
Initially an overnight $100 million eurokiwi bond issue supported the currency. Then, in the morning, it spiked to its highs as eagerly awaited details of Fletcher Challenge's restructuring were released.
However, those who had set themselves for the sale of plum asset Fletcher Energy were disappointed as the $4.6 million deal will be done in US dollars, cutting the amount to be repatriated into the kiwi.
The unit was knocked further on the back of a negative revision of the August trade deficit and Asians sold in bond-related transactions.
Director of treasury consultancy Greenwich Financial Services, Jon Clarke, said, notwithstanding yesterday's gyrations, the broad outlook for the kiwi remained negative, substantially relying on the prospect of further central bank intervention in the euro.
Both the euro and Australian dollar, the main current drivers of the New Zealand dollar, are struggling, with the former possibly heading for fresh lows around 84.50USc and the latter in imminent danger of breaking below its historic low of 52.85USc.
- NZPA
<i>Currency:</i> Dollar trades in wide range
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