The New Zealand dollar eased off from a multi-month low against the US dollar on Thursday, but traders still remain cautious concerned over the escalating nuclear crisis in Japan.
NZD/USD rose to 0.7232 during late Asian trade, from 0.7108, the lowest since August 2, 2010.
The pair is likely to find support at 0.6980, a low reached on August 1 and resistance at Wednesday high of 0.7356.
Earlier on Thursday, Japanese authorities said that they were intensifying efforts to cool reactors at Fukushima Daiichi nuclear plant. Sea water was poured on the plant by army helicopters in an attempt to keep the fuel rods from over-heating and stop further radiation leaks.
The kiwi was also down sharply against the yen, with the pair NZD/JPY collapsing as far as 54.98 yen, the lowest since April 2009, before edging back to 57.43 yen.
Besides, New Zealand’s finance minister Bill English said that the government plans to borrow nearly NZD10 billion to rebuild Christchurch, the second largest city in the country devastated by earthquake last month. The new borrowing by the government is expected to push the country’s debt to 30 percent of gross domestic product by June 2014, Forexpros reported.