After overnight pressure, the New Zealand dollar rose on euro and Australian dollar strength to fully recapture its healthy start for the week.
Whippy ranges saw the New Zealand dollar fetching US62.92c at 6pm, the same as yesterday's 5pm close and a near 40-point improvement from the morning.
The Australian dollar also made up lost ground at US71.53c (US71.55c yesterday).
Dealers said that after hitting a six-year high of US63.35c yesterday, the New Zealand dollar simply ran out of gas overnight, hitting a low of US62.50. But it managed to claw back its position, peaking at US63.03c during the session.
However, BNZ currency strategist Sue Trinh said a correction lower was likely.
"We still think the downside remains the greater risk given the geopolitical uncertainty at the moment. In that sort of environment, peripheral currencies like the kiwi and the aussie normally don't fare too well.
"Also you have some technical factors as well. The kiwi had a very strong rate of appreciation over the past month or two without much of a material pullback, so normally that sort of appreciation is unsustainable in the shorter term."
She forecast an overnight range of US62.50c to US63.15c.
Elsewhere, the euro recovered from a sell-off overnight to advance to US1.1777 (US1.1805 at 5pm yesterday), while the United States dollar was buying 108.84 yen (109.22).
On the crosses, the kiwi was buying A87.97c (A87.95c), 68.48 yen (68.74), 37.15 pence (37.25), 0.5343 euro (0.5334), and 0.8318 Swiss francs (0.8338).
The Australian dollar was at $1.1368 ($1.1364).
The trade weighted index was at 64.49 (64.52), while the monetary conditions index was at plus-451 (454), and 90-day bank bills were at 5.41 per cent (5.44).
On the debt market, April 2004 bonds were lower at 5.29 per cent (5.31 per cent), February 2006s were 5.78 per cent (5.75), and November 2011s were 6.16 per cent (6.14).
- NZPA
<i>Currency:</i> Kiwi recovers after whippy day's trading
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