The New Zealand dollar stalled its declined and rebounded today on speculations that losses were excessive. Gains were limited, though, as the disagreement between European leaders hurt demand for higher-yielding assets.
Losses were indeed big as the kiwi (the nickname of New Zealand’s currency) was falling since the beginning of May against the greenback and since the beginning of March versus the yen. In fact, just yesterday the currency touched the lowest level this year. The NZ dollar had a bit of good news today as the traded balance surplus widened to NZ$355 million in April from NZ$186 million in March. Nevertheless, the adverse global economic environment caused by Europe’s woes is likely to keep the kiwi from running much higher.
NZD/USD was up from 0.7516 to 0.7546 as of 11:02 GMT today after it touched yesterday 0.7457 — the lowest level since November 25. NZD/JPY climbed from 59.69 to 59.84, following the drop to 59.14 yesterday — the lowest price since December 20.
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