18 Sep 2014

Dollar recovers from seven month low

8:44 pm on 18 September 2014

The New Zealand dollar hit a seven-and-half-month low of 80.73 US cents overnight before recovering in late afternoon trading.

The New Zealand dollar was boosted by data issued this morning showing economic growth was stronger than expected in the June quarter, while the annual rate of growth was the strongest in seven years at 3.5 percent.

Despite the positive economic news, ANZ Bank senior foreign exchange strategist Sam Tuck said the movement in the local currency was dictated by the US dollar's continuing strength.

"The New Zealand-US dollar got sold along with broad-based US dollar buying against every other currency as well."

A short time ago, the New Zealand dollar was mixed, trading at 81.10 US cents, 90.46 Australian cents, 49.86 British pence, 0.6304 euro, 88.13 yen and 4.98 renminbi.

New Zealand shares, meanwhile, were slightly stronger today with the benchmark Top 50 Index rising 12 points to 5154.

Craigs Investment Partners head of wealth research Mark Lister said the local market was performing better than others in the Asian region, ahead of some big news over the next 48 hours - particularly the referendum on Scotland's independence.

"The export sector will be very happy that the New Zealand dollar continues to weaken off a little bit."

Meridian Energy's share price rose 4.5 cents to $1.415, Heartland rose 3 cents to $1.01, EROAD rose 5 cents to $3.55 and Xero fell 14 cents to $21.21.

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