NZ dollar remains strong despite dip

Photo / File

The New Zealand dollar was trading US83.43c at 5pm yesterday after spiking to US83.69c early in the session.

It traded mostly in a range between US83.30c and US83.55, drifting off last week's 30-year high, and edging down through the session.

The kiwi hit US$83.84c last Friday, its highest level since November 1981 - before the dollar was floated - and at 5pm that day was at US83.15c.

- REUTERS reported that investors had become more cautious after weak data and ahead of an emergency meeting of European leaders about containing the region's debt crisis.

Markets were also wary about China after data showed a food-driven pick-up in inflation and a slowdown in annual import growth.

Across the Tasman, the Australian dollar was also down on the greenback, to US$1.0710 at 5pm, from US$1.0773 on Friday.

But the aussie underperformed on the cross-rate against the kiwi, which was at A77.89c at 5pm, compared to A77.19c on Friday. The US dollar had problems of its own as the US's pressing debt ceiling issue showed no sign of resolution and jobs data from last week suggested the Fed would keep interest rates low well into next year.

The euro fell to two-week lows against the US dollar in the lead-up to the emergency meeting of European leaders worried that the debt crisis was spreading to Italy, the region's third-largest economy.

At 5pm, it was trading at US$1.4193 compared to US$1.4339 on Friday.

- NZPA