The New Zealand dollar strengthened against a range of currencies overnight, peaking at a 10-day high against the greenback.
From US66.46c at 5pm yesterday, the kiwi reached around US67.90c late last night, then eased to US67.49c by 8am today.
In its morning brief, ANZ bank said underlying support
for the NZ dollar continued, as the currency edged higher amid severe global uncertainty.
Against the Australian dollar, the kiwi reached a five-month high around A84.60c, before falling back to A84.35c at the local open, from A83.88c at 5pm.
The NZ dollar also made it to a week-high against the euro overnight near 0.4720, and by 8am was at 0.4714 from 0.4631 at yesterday's local close.
Against the yen, the kiwi was up to 71.27 from 69.40, while the trade weighted index was 64.07 at 8am from 63.07 at 5pm.
Bank of New Zealand currency strategist Danica Hampton said the NZ dollar staged something of a recovery overnight against the greenback, underpinned by a generally weaker US currency and the stabilisation in global financial markets.
As the night progressed, a collaborative effort from central banks to inject cash into tension-filled global money markets had a bit of a calming effect on financial markets. US equities also rebounded strongly, Ms Hampton said.
The recovery in US stock markets and rebound in investor confidence helped underpin the NZ dollar against the yen, and while the kiwi dribbled off its highs against the greenback there were few reasons to sell the NZ currency aggressively.
- NZPA
