The New Zealand dollar recouped some of its overnight losses today after the US dollar was boosted by more confident United States consumers.
The New Zealand dollar closed at US58.22c from US58.58c at 5pm yesterday, while the aussie ended at US65.70c (US65.99c). The US dollar strengthened to buy 116.97 yen (116.88 yen), while against the US dollar the euro eased to $US1.1840 ($US1.1844).
The kiwi eased against the European single currency to buy 0.4917 euro from 0.4940 yesterday.
The euro peaked at $US1.1932 overnight and some traders expected a retreat to current levels before mustering an attack on the $US1.20 mark.
Westpac forex sales manager Mike Burns said the kiwi's sagging fortunes came as the greenback "gained on all major currencies".
In the US, stronger consumer confidence and higher home sales on the back of low interest rates "combined to give the US a boost across the board".
A two per cent leap by the Dow Jones industrial average and a 3 per cent jump by the Nasdaq composite index indicated that investment was heading back into the US.
Mr Burns said the kiwi and aussie dollars were simply weakening in line with the euro.
Against the aussie, the kiwi closed at A88.58c (A88.50c).
On the other crosses, the kiwi was buying 68.09 yen (68.36 yen), 35.40 pence (35.67), and 0.7481 Swiss francs (0.7539).
The monetary conditions index was at plus 191 (210), the trade-weighted index was at 61.41 (61.65) and 90-day bank bill yields were at 5.28 per cent (5.26).
The February 2005 yields closed at 4.89 per cent (4.88), the November 2006s at 5.08 per cent (5.04), and the November 2011s at 5.38 per cent (5.33).
- NZPA
<i>Currency:</i> Kiwi recoups some losses after greenback flexes muscles
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