After a tumultuous month, the New Zealand dollar rose today as investors became less worried about risk.
By 5pm today it was buying US59.27c from US58.80c at 5pm on Friday.
The NZ dollar showed little reaction to news that salary and wage rates rose strongly in the September
quarter as economists expect the rate of increase to slow markedly.
After notching up seven of its 10 most volatile days ever in October traders are holding their breath and wondering where to from here. There was confidence in equity markets today, demonstrating a return of an appetite for risk.
In a new month, a fresh approach and lower volatility were desired by all.
"Expect a weary start to things as the tsunami of economic data to come this week will mean many wait for tonight's releases before transacting," ANZ said.
The kiwi was around US68c early in October, then late in the month it troughed around US53.50c, its lowest level in more than five years.
Against the Australian dollar, the kiwi was at A86.90c by 5pm today from A87.27c at Friday's local close.
The NZ dollar was also at 0.4610 euro from 0.4575, and 58.85 yen from 57.80. The trade weighted index was 59.58 at 5pm from 59.10.
The US dollar recorded its biggest monthly gain against a basket of currencies in more than 17 years as October ended, boosted by month-end demand and concerns about a deteriorating global economy.
currency rates:
NZ dlr/US dlr US59.27c US58.80c
NZ dlr/Aust dlr A86.90c A87.27c
NZ dlr/euro 0.4610 0.4575
NZ dlr/yen 58.85 57.80
NZ dlr/stg 36.39p 35.87p
NZ TWI 59.58 59.10
Australian dollar US68.15c US67.34c
Euro/US dollar 1.2861 1.2840
US dollar/yen 99.33 98.45
- NZPA
