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NZ Dollar Drops To Five-month Low Vs Greenback Below US75c

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, June 13 NZPA - The New Zealand dollar dropped to a five-month low below US75c against a broadly rising greenback as the US reported solid retail data.

Total sales at US retailers rose 1 percent in May as many consumers had more cash from tax rebate cheques, a government report showed.

Strong consumer spending, despite higher petrol prices and deteriorating wealth from falling house prices, will allow the Federal Reserve more latitude to raise US interest rates to stem inflation.

By 8am today the NZ dollar was buying US74.98c, having dropped to around US74.85c shortly after midnight from US75.40c at 5pm yesterday.

The ANZ bank said poor Australian employment data yesterday had weighed on the fortunes of the NZ dollar.

Large flows overnight helped to cushion the fall but took nothing away from overall directional moves, ANZ said.

Australia yesterday reported a 19,700 fall in seasonally adjusted employment in May, when economists had expected a rise of 13,500.

At today's local open the kiwi was at A80.29c, barely changed from A80.25c at 5pm.

The NZ dollar was also little changed overnight against the euro and yen.

At 8am today the kiwi was buying 0.4862 euro and 80.93 yen, from 0.4867 euro and 80.89 yen at 5pm yesterday. The trade weighted index was 67.68 at 8am from 67.80.

ANZ said New Zealand April retail sales data, due out at 10.45am today, would have to be "extremely positive" for the kiwi to break back above US75.50c today.

NZPA WGT Reuters mjd nb

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