NZ dollar unable to hold above US84c

NZPA

Thursday 18th August 2011

The New Zealand topped US84c for the first time in a week, but was unable to hold that level even against a broadly weaker greenback.

At 8am the kiwi was buying US83.74c, up from US83.42c at 5pm yesterday but down from the overnight peak around US84.20c.

BNZ strategist Kymberly Martin said sentiment toward the US dollar remained lacklustre as the market continued to discount a muted US growth outlook.

ANZ said the NZ dollar had been kept on the front foot against the greenback through the flow on effects of higher commodities and the broadly weaker US currency.

The Australian dollar had slightly outperformed on the cross, with a rally helped by firmer commodities, but it remained within recent ranges.

World equities were pulled down by tumbling US technology stocks and a return of wariness after Swiss measures to halt the franc's rise frustrated investors seeking harsher steps.

The US dollar dropped across the board, hurt by sharp losses versus the franc, which strengthened even after the Swiss National Bank announced its series of measures to halt the currency's steady appreciation.

The NZ dollar was little changed from its 5pm levels, buying 0.5801 euro and 64.05 yen at 8am, while slipping to A79.34c against the Australian dollar from A79.55c at 5pm. The trade weighted index was 71.61 at 8am from 71.57 at 5pm.

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