The New Zealand dollar fell after oil weakened on concern that an oversupply may continue, driving investors away from currencies linked to commodities.
The kiwi dropped to 66.70 US cents at 8am in Wellington, from 66.98 cents at 5pm yesterday. The trade-weighted index declined to 72.49 from 72.71 yesterday.
Investors shied away from growth assets such as equities and currencies of commodity producing countries after Saudi Arabia's oil minister Ali al-Naimi said the country won't cut output and Iranian oil minister Bijan Namdar Zanganeh called last week's agreement between Saudi Arabia and Russia to freeze oil production at January levels "ridiculous," stoking concerns an oversupply won't reverse any time soon.
That dashed hopes that oil prices may be headed for a recovery, which would bolster the outlook for inflation and interest rates.
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