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NZ Dollar Drops To Four Month Low

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, May 14 NZPA - The New Zealand dollar fell to a four-month low today as the United States currency rallied broadly after a report on US April retail sales beat forecasts.

The kiwi closed on its session low at US76.27c, around half a cent down on yesterday's US76.82c close.

Bank of New Zealand currency strategist Danica Hampton said lingering concerns about a sharp slowdown in the New Zealand economy continued to push the kiwi down against the greenback.

First quarter retail sales figures tomorrow are expected to confirm a retail slowdown seen in earlier partial indicators and recent nasty sales reports from Briscoe and The Warehouse, she said.

Against the Australian dollar, the kiwi was buying A81.25c unchanged from 5pm yesterday.

Australia's budget got a generally good reception and was seen as a slight fiscal tightening.

Westpac New Zealand market strategist Michael Gordon said the budget was slightly more inflationary friendly than expected, "perhaps a bit of a surprise with the size of the spending cuts, which helped with the healthy surplus overall".

The New Zealand dollar trade weighted index fell to 68.42 from 68.63 yesterday.

NZPA WGT Reuters sml ob

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