Kiwi dollar down against stronger greenback

The New Zealand dollar fell against the greenback, which strengthened broadly after data showed the United States lost far fewer jobs than expected last month, bolstering hopes the US economy is on a stable path to recovery.

By 8am today the NZ dollar was buying US71.55c, down from US72.22c at 5pm on Friday.

The US dollar posted its best performance against a basket of currencies in nearly a year overnight Friday, after the data showed US employers cut 11,000 non-farm jobs last month while markets had expected job losses of 130,000.

The surprisingly strong report stoked speculation the Federal Reserve may consider raising US interest rates from record lows sooner than initially thought. That would increase returns on US dollar-denominated assets and make them more attractive again to investors.

The NZ dollar peaked at a two-week high against the Japanese currency at 64.89 yen, as it climbed from 63.66 yen at Friday's local close. By 8am today the kiwi was at 64.69 yen.

The kiwi also lifted to 0.4812 euro at today's local open from 0.4795 at 5pm on Friday, and was little changed against the Australian dollar at A78.18c. The trade weighted index was 64.15 at 8am today from 64.16 at 5pm on Friday.

BNZ Capital senior strategist Danica Hampton said the key local focus this week was Thursday's Reserve Bank interest rate decision.

With the Reserve Bank expected to reiterate that rates would remain low until well into next year, at the same time as US hike expectations had been reinvigorated, she expected the NZ dollar would struggle towards US73c this week.

- NZPA