Dollar weakens against greenback

The New Zealand dollar steadied against the Australian dollar yesterday but continued to weaken against the greenback.

The kiwi, which tumbled Monday after credit rating company Standard & Poor's changed the outlook on the country's long-term currency rating, failed to make up any ground , hindered by a weaker euro.

By 5pm, the kiwi was at US77.06c from US77.48c late on Monday.

The currency fell around 1c in 20 minutes, to US77.30c, on the news that New Zealand's long-term foreign currency credit rating was affirmed at AA plus but the outlook was changed to negative from stable. The outlook change implies a one in three chance of downgrade in the medium term.

Against the Australian dollar, the kiwi was at A78.10c, down from A78.31c earlier yesterday. but above Monday's level of A77.97c.

In contrast, the kiwi rose against the euro, to 0.5674 from 0.5627.

The euro has been pressured by political uncertainty in Ireland and the spread of debt problems throughout Europe, amid a planned bailout.

Moody's Investors Service has warned it may lower the credit rating of Ireland by more than one level.

The kiwi was flat against sterling, at 48.35p, and a touch weaker against yen, falling to 64.22 from 64.59 on Monday.

The trade weighted index was little changed, at 69.04 from 69.08.

Japanese markets were on holiday yesterday, creating choppy trading conditions as liquidity thinned.

- NZPA