KEY POINTS:
The New Zealand dollar continued its rebound today after making up lost ground against the US and Australian dollars overnight.
By 5pm, the kiwi had risen to US77.10c from US76.30c late yesterday. Against the Australian dollar, the kiwi was at A87.82c from A87.54c, having risen above A88c earlier in the session.
After volatile trading against the Japanese currency - from 84.20 yen to near six-week lows below 83 yen - the NZ dollar was buying 84.30 yen late today.
The NZ dollar slid more than US1c late yesterday afternoon in less than an hour, after a sharp fall in Asian equities triggered carry trade selling, and ahead of a weaker sales report on Auckland property.
However, New Zealand's high interest rates, particularly compared with the US, continued to provide support for the kiwi, Bank of New Zealand currency strategist Danica Hampton said.
The kiwi also received a lift from the Australian dollar, which rose after figures today showed a surge in building approvals in November.
The US dollar held steady against the yen, getting some respite after hitting a six-week low last week on poor US jobs data that bolstered expectations for an aggressive Federal Reserve rate cut.
The dollar rebound a little this week as some traders were disappointed the weak employment report did not spark a deeper retreat in the US currency, prompting them to reverse positions betting the US dollar would fall further.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US77.10 US76.30c
NZ dlr/Aust dlr A87.82c A87.54c
NZ dlr/euro 0.5242 0.5183
NZ dlr/yen 84.30 83.11
NZ dlr/stg 39.10p 38.73p
NZ TWI 71.38 70.68
Australian dollar US87.82c US87.17c
Euro/US dollar 1.4710 1.4720
US dollar/yen 109.34 108.92
NZPA
- NZPA