Dollar falls as US dollar gains

The New Zealand dollar fell below US68c for the first time in a week today as the US dollar rose and equity markets weakened.

By 5pm the NZ dollar was US67.92c, down from US68.68c at the same time yesterday.

The currency had an unsuccessful run at the US69c level overnight and then fell when risk again became an issue for traders.

"It wasn't just a kiwi story however, with the USD finding favour across the board as global risk appetite waned," ANZ said.

The NZ dollar retreated from a recent 4-1/2 month high against the Australian dollar, settling at A81.99c at 5pm from A82.07c yesterday.

Markets are thin in August when Northern Hemisphere investors are on holiday and there is little domestic data this week. July trade data today revealed falling imports.

BNZ said there was a lot of water to go under the bridge for the NZ dollar "but the improving indicators and sentiment we have been noting since March continue to argue in favour of support for risky currencies like the NZD".

The NZ dollar is near a 12 year high against the British pound. "There are very deep worries about the immediate prospects for the UK economy," BNZ said.

The NZ dollar was at 41.85 pence at 5pm, down from 42.05p yesterday. It hasn't been above 42p since mid-1997.

It slipped to 0.4766 euro at 5pm from 0.4804 yesterday, and was down to 63.65 yen from 64.65. The trade weighted index dropped to 63.30 from 63.82 yesterday.

Currency rates:

5pm today 5pm yesterday

NZ dlr/US dlr US67.92c US68.68c

NZ dlr/Aust dlr A81.99c A82.07c

NZ dlr/euro 0.4766 0.4804

NZ dlr/yen 63.65 64.65

NZ dlr/stg 41.85 42.05

NZ TWI 63.30 63.82

Aust dlr/US dlr 82.80 83.68

Euro/US dlr 1.4249 1.4302

US dlr/yen 93.72 94.18

- NZPA