The New Zealand dollar traded in a very tight range yesterday, remaining under the 40USc mark to close at 39.84c.
One currency dealer said the kiwi was likely to stay within a range of 39.6c to 40.20c for the week, "although with the kiwi anything is possible. It's still possible it can test its low.
"The kiwi held up reasonably well given that it followed the aussie down, which tested new lows," the dealer said.
The Australian dollar fell to yet another all-time low yesterday, hitting 52.60USc at 11.55 am Sydney time, seven basis points lower than Friday afternoon's low of 52.67c.
A statement from the European Central Bank that it would not support any spikes down in the euro as a result of the Middle East crisis put pressure on the aussie and kiwi.
The euro was struggling after the Nasdaq's muscular 7.8 per cent rise on Friday with the investment flow returning to the US.
The New Zealand dollar hit its all-time low of 39.59c on Friday, and there is little positive for it on the horizon.
The kiwi was trading at 39.85c shortly before yesterday's consumer price index announcement but firmed to 39.91c shortly afterwards.
Consumer price inflation rose 1.4 per cent in the September quarter, taking the annual rate to 3 per cent, the highest rate in five years.
The quarterly rise of the CPI was the worst quarter for over a decade. In the June 1990 quarter, it rose 1.8 per cent.
- NZPA
Currency: Kiwi stays in pits as $A falls to new low
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