Kiwi recovers lost ground

The NZ dollar returned to above US82c yesterday. Photo / File

The New Zealand dollar crawled back above US82c yesterday, and lifted a little against the Australian dollar after Tuesday's slump against a range of currencies.

The kiwi was seen as a poor performer on Tuesday night, but at 8am yesterday was buying US81.83c. By 5pm the NZ dollar had climbed back to US82.14c, still well down on its 30-year peak last week above US83.80c.

Similarly, it was up a little against the aussie, trading at A77.35c at 5pm, compared to Tuesday's close at A77.31c. The aussie was also up, trading at US$1.0619c at 5pm, compared with US$1.0600c at the same time on Tuesday.

Both the commodities-driven aussie and kiwi were riding Chinese economic growth data which soothed some investor worries over a global slowdown as eurozone debt worries were also deterring investors.

China's annual GDP grew 9.5 per cent in the second quarter, easing concerns that the anti-inflation fight there could damage Asia's biggest economy.

The euro edged up to US$1.3996c after Chinese GDP figures and at 5pm was trading at US$1.3987c, compared with US$1.3952 on Tuesday, though Reuters reported that the single currency remained under pressure before yet another emergency meeting of European Union leaders tomorrow night (NZ time).

The kiwi fell to 65 at 8am but by 5pm was back to 65.30, from 65.70 at 5pm on Tuesday.

-NZPA