Currency: Dollar drifts lower

The New Zealand dollar drifted lower today amid uncertainty about the global economic outlook and forthcoming corporate earnings in the United States.

By 5pm the NZ dollar was buying US62.85c, down from US63.66c at 5pm yesterday. The range was US62.67c to US62.98c during the domestic session.

ANZ Institutional Bank chief foreign exchange dealer Murray Hindley said it was back to the aversion and risk scenario today after a fall the US sharemarket.

"One day the equity markets are down, the next day they are up. Risk is on, Risk is off," he said.

Australian labour market data for June due tomorrow may provide some focus. Economists expected the data to show the Australia's jobless rate has climbed to a six-year high of 5.9 per cent.

The NZ dollar fell to a six-week low against the yen as the yen gained against the US dollar. It was at 59.27 yen at 5pm from 60.70 yen yesterday.

REUTERS reported the yen rose as uncertainty about the global economic outlook and forthcoming US corporate earnings increased the safe-haven appeal of the Japanese currency.

The NZ dollar slipped to 0.4515 euro at 5pm from 0.4554 yesterday.

It was at A79.86c from A79.73c, while the trade weighted index fell to 59.68 from 60.22.

Currency rates:

NZ dlr/US dlr US62.85c US63.66c

NZ dlr/Aust dlr A79.86c A79.73c

NZ dlr/euro 0.4515 0.4554

NZ dlr/yen 59.27 60.70

NZ dlr/stg 39.03p 39.13p

NZ TWI 59.68 60.22

Aust dlr/US dlr 78.68c 79.84c

Euro/US dlr 1.3916 1.3983

US dlr/yen 94.30 95.34

- NZPA