The New Zealand dollar fell after a survey showed a decline in business confidence this month, giving traders more reason to sell a currency near a three-year high against the greenback and near a record on a trade-weighted basis.
The kiwi was at 87.53 US cents at 5pm in Wellington, down from 87.75 cents at 8am in Wellington, when it was little changed from the close in New York on Friday. The trade-weighted index fell to 81.24 from 81.52 on Friday.
Business confidence fell in June, according to the ANZ Business Outlook, which showed a net 43 percent of those surveyed see better general business conditions in the year ahead, down from 54 percent a year earlier, a decline attributed to a central bank raising interest rates, lower export prices for dairy and forestry, and a housing market showing signs of cooling.
Prime Minister John Key said at his post-Cabinet media conference today that he expects the kiwi dollar to fall as commodity prices continue to weaken.
"Business confidence was the market mover - weaker data in a market which wants to sell the kiwi dollar at a very high level," said Imre Speizer, senior market strategist at Westpac Banking Corp.
