Kiwi off high but stays above US73c

The NZ dollar has eased on the US dollar back after reaching a six-month high yesterday. Photo / Martin Sykes

The New Zealand dollar eased a touch yesterday from its earlier six-month high against the greenback around US73.50c.

By 5pm, the kiwi was at US73.41c, compared with US72.74c late on Monday afternoon.

Against the Australian dollar, the kiwi was a touch firmer at A81.40c from A81.28c on Monday.

The kiwi was up against the euro (€0.5648 from €0.5628), yen (63.84 from 63.70) and sterling (47.36p from 47.10p). As a result of the currency holding on to much of its overnight gains across the board, the trade-weighted index rose to 68.39 from 68.13.

The kiwi gained from a generally positive mood offshore, which prompted investors to cut positions in safe haven currencies such as the greenback.

Short-term speculative accounts moving to cover short positions in the NZ dollar against the US dollar also helped push the kiwi above US73c overnight Monday.

Data on home sales in the United States had boosted investor sentiment, with new home sales rising nearly 24 per cent in June from a month earlier, although it was still the second-weakest month on record.

Markets were also still taking heart from stress test results for 91 European banks, with regulators finding only a handful of banks failed the test.

- NZPA