28 Apr 2011

Kiwi dollar makes up losses

6:12 pm on 28 April 2011

The New Zealand dollar has made up nearly all the losses is suffered following the Reserve Bank's decision on Thursday morning to keep the official cash rate on hold.

On Thursday evening, the Kiwi was buying 80.8 US cents, not far short of yesterday's three-year high of slightly over 81 cents.

Announcing the cash rate, the Reserve Bank noted it sees some recovery in the economy since the 22 February earthquake.

But it says the outlook remains very uncertain and it does not expect to increase the cash rate for some time.

That statement sparked a sell-off in the New Zealand dollar, which lost nearly 0.75 of a cent against its American counterpart.

The kiwi gained against the US dollar when the Greenback fell in the wake of the latest financial statement from the Federal Reserve expressing concern at the level of the US deficit from the Federal Reserve which saw the US dollar retreat.