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NZ Dollar Below US76c For First Time In Nearly Four Months

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, May 15 NZPA - The New Zealand dollar dropped below US76c for the first time in nearly four months overnight.

It then regained some lost ground rising to around US76.35c early today before again fading away and by 8am was down to US76.08c.

Markets are waiting for the 10.45am release of March quarter retail figures.

Bank of New Zealand currency strategist Danica Hampton said it seemed that expectations of a weak retail sales result were taking a toll on NZ dollar sentiment.

The lift in the NZ dollar overnight after the fall below US76c followed the release of softer than expected inflation data in the United States that triggered a bout of US dollar selling.

A strong rebound in US stocks and risk appetite had helped reinvigorate demand for carry trade currencies such as the NZ dollar, Ms Hampton said.

Solid demand for the kiwi against the yen had provided an additional prop for the NZ dollar against the greenback, but heavy selling of the NZ dollar from a variety of accounts knocked the local currency from its highs.

Against the broadly easing yen, the kiwi was at 79.95 at today's local open from 79.89 at 5pm yesterday, and against the euro it was buying 0.4920 from 0.4935.

The kiwi lifted against the Australian dollar to A81.42c at 8am today from A81.25c at yesterday's local close. The trade weighted index slipped to 68.34 from 68.42.

NZPA WGT mjd nb

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