Australia, New Zealand Dollars Rise From 6-Year Lows on Stocks

By Candice Zachariahs

Oct. 24 (Bloomberg) -- The Australian and New Zealand dollars rebounded after dipping to six-year lows against the yen as U.S. stocks and global commodities advanced for the first time in three days.

The currencies advanced against the U.S. dollar as crude rose from a 16-month low after OPEC's president said members would trim production. The Dow Jones Industrial Average recovered from a 276-point drop that sent it below its lowest close since April 2003.

``The Australian dollar-yen declined to a new six-year low and almost tested the low recorded in July 2002,'' wrote Toronto- based Matthew Strauss, a senior currency strategist in Toronto at RBC Capital Markets Inc., in a research note. ``The late rally in North American equities,'' saw the currency rebound.

Australia's dollar dropped to 62.67 yen, the lowest since August 2002, before trading at 65.23 yen as of 7:40 a.m. in Sydney, from 64.56 yen late in Asian yesterday. New Zealand's currency slipped to 55.63 yen, the lowest since September 2002, before recovering to 58.01 yen from 57.43.

The Australian dollar rose 0.9 percent to 66.89 U.S. cents from 66.28 cents in late Asian trading yesterday. New Zealand's dollar advanced 1 percent to 59.57 U.S. cents from 58.97 cents yesterday.

The currencies climbed after Exxon Mobil Corp. and Chevron Corp. rallied more than 8 percent on expectations OPEC will trim output to stem a slide in crude prices. The UBS Bloomberg Constant Maturity Commodity index of 26 raw materials rose for the first time in three days. Raw materials account for 60 percent of Australia's exports and 70 percent of New Zealand's.

To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net