Commodities sell-off weighs on NZ dollar
Wed, 11 Jul 2012 10:09a.m.
The New Zealand dollar gave up overnight gains after commodity prices fell and US stocks weakened, taking the wind out of growth-linked currencies.
The New Zealand dollar traded at 79.30 US cents, little changed from 79.27 cents at 5pm in Wellington yesterday.
It reached as high as 79.84 cents in New York trading.
The trade-weighted index was at 72.22 from 72.18 yesterday.
The Thomson Reuters/Jefferies CRB Commodity Index of 19 commonly traded commodities fell 1.4 per cent as an oil worker strike ended in Norway and figures showed China's imports are growing slower than expected.
Shares on Wall Street fell after disappointing results from firms caused investors to fret about a weak earnings season.
"We've seen a continuation of equity weakness ahead of earnings and in the New York session there was a big selloff in commodity prices" which has weighed on the kiwi, said Tim Kelleher at ASB Institutional.
The kiwi dollar rose to 64.76 euro cents from 64.54 cents on Tuesday, but fell to 77.85 Australian cents from 78.10 cents and 62.99 yen from 63.04 yen.
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11/07/2012 1:16:33 p.m.
The kiwi is still about 50 cents over valued against the US and it is said to be due for a major crash this winter. Bail out if you can.
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