The New Zealand dollar traded sharply lower today, firstly in response to an upsurge in the US dollar and then to data showing growth was surprisingly weak over the first quarter.
Statistics NZ said gross domestic product (GDP) rose by just 0.3 per cent in the March quarter - well under market expectations of a 0.6 per cent gain and compared with a 1.5 per cent gain in the December 2012 quarter.
By mid-morning, the Kiwi had recovered a little ground to US78.81c, having fallen from US80.50c overnight to US$78.57c as a direct response to the US Federal Reserve chairman Ben Bernanke's comments that the US economy was expanding strongly enough for the Fed to ease up on its bond-buying programme.
But by 11am, the kiwi had been knocked back down to US78.54c in response to the poorer-than-expected GDP data.
Several other currencies in the dollar bloc fell sharply in response to US dollar's new found strength - the Australian dollar hit a 33-month low of 92.9c, down by just over US2c.