KEY POINTS:
The New Zealand dollar was dumped in afternoon trading.
The NZ dollar was buying US53.40c at 5pm, its lowest level in five weeks. It closed its local session yesterday at US55.60c.
The NZ dollar had been weak overnight in London before New Zealand demand stepped in, ANZ economist Philip Borkin said early today.
The NZ dollar rose above the US54c figure in morning trade but then the trend turned firmly downward.
Imre Speizer, senior market strategist at Westpac, said the fall in the kiwi on Tuesday in response to a bleak NZIER report and a warning about the outlook for New Zealand's credit rating by Standard and Poor's was now looking like a turning point.
The currency traditionally firmed over the summer holiday break.
"What happened today is still a hangover from Tuesday. This is the turning point people were waiting for," he said.
"We are now on the long road down," he said.
He is predicting the currency will fall to between US45c and US50c in the next four months.
The NZ dollar was also down against the Australian dollar at A81.30c by 5pm from A82.40c at 5pm yesterday.
The Australian dollar was down to US65.63c at 5pm from US67.42c.
The New Zealand dollar slipped against the euro from 0.4192 to 0.4055 at 5pm. Against the Japanese yen it fell from 49.73 to 47.38.
The trade weighted index was at 53.30 from 55.16 yesterday.
- NZPA
