Dollar falls, then up again to 62c

The New Zealand dollar fell to US62c overnight, before climbing back above US63c, with analysts noting thin liquidity and low trade volumes in major currency markets.

The NZ dollar was buying US63.35c at earlier today, from US62.36c at 5pm yesterday.

BNZ senior strategist Danica Hampton downplayed Statistics New Zealand's May retail figures released yesterday, saying a spike in retail figures at the start of winter didn't necessarily mean markets were recovering.

"For the true test of the health of retailing, [analysts] prefer to keep closer tabs on sellers, rather than buyers."

She also noted falling farmer confidence, with the dairy sector remaining in the doldrums and the increasing pessimism of sheep and beef farmers.

The NZ dollar was trading at A80.91c, from A80.48c at 5pm yesterday, 0.4545 euro, from yesterday's 0.4482, while gaining against the yen to 58.85 from 57.65 yesterday.

The trade weighted index was at 59.92, from 59.24 yesterday.

The greenback rose against the yen on Monday, rebounding from a five-month low, as hopes that US corporate earnings may not be as weak as initially feared sparked gains on Wall Street.

The euro also gained after European Central Bank President Jean-Claude Trichet sounded a bit more upbeat about euro-zone growth for the rest of 2009.

NZPA