The New Zealand currency markets had a "messy little day" yesterday as the kiwi strengthened then followed the aussie down before trending upwards again, a currency dealer said.
The kiwi opened at 45.67USc from Thursday's 45.53c close, and traded in a 45.49c to 45.71c range. It closed up slightly at 45.56USc.
The New Zealand dollar was firmer in early trade after benefiting from overnight softness in the euro, which broke through a psychological 90USc level down to 89.95c, mostly on technical selling, before bouncing.
There was considerable overseas buying in the kiwi overnight and there were rumours that buying was linked to investors purchasing Fletcher Energy stocks, a currency dealer said. "But I'm not sure about that," he said.
The overseas interest continued throughout the morning, with investors selling aussie dollars and buying kiwi - the reverse of recent trends, he said.
When the aussie tracked lower the kiwi followed it down but recovered in late trading.
On the cross rates the kiwi was up at 77.94Ac from 77.63c at Thursday's close. The local unit's trade-weighted value was higher at 51.60. With the yield on 90-day bank bills just a notch lower at 6.79 per cent, monetary conditions tightened with the index at minus 526.
In the bond market prices were mostly steady to two points stronger. In New York, early gains by US treasuries were trimmed as tech stocks rallied.
- NZPA
Kiwi closes up in rough trade
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