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NZ Dollar Ends Week Near Five-month Low

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, June 13 NZPA - The New Zealand dollar ended the week near a five-month low around US75c against a broadly rising greenback as the US reported solid retail data.

In contrast, local data showed retail sales went into reverse to the tune of 0.5 percent in April once auto sales were excluded.

Including car sales, seasonally adjusted sales rose 1 percent in April but supermarket spending had a surprising fall.

The retail sales data added to a picture showing a sharply slowing economy and the prospect of lower interest rates and a weaker currency.

The kiwi closed on US75.02c, 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.

The kiwi weakened to A79.83c from A80.25c at 5pm yesterday.

The Australian dollar jumped 0.4 percent to US94.06c after Reserve Bank of Australia governor Glenn Stevens suggested a tight monetary policy remains essential for the country.

The trade weighted index closed on 67.61 from 67.80.

The US dollar fell from a nearly four-month high against the yen as investors booked profits from this week's rally before a gathering of Group of Eight finance ministers in Japan this weekend.

The dollar had staged broad gains this week after anti-inflation talk from Federal Reserve officials, and yesterday's surprisingly strong retail sales figures added to expectations for Fed interest rate increases this year.

NZPA WGT Reuters sml mgr

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