Kiwi ends volatile day slightly lower

File photo / Dean Purcell

The New Zealand dollar had a volatile session but ended slightly below where it started yesterday.

Dealers said factors included volatile commodity prices and news of Osama bin Laden's death.

The direction of the US dollar remains a big factor in the market but locals are also waiting for the Reserve Bank of Australia interest rate decision today. It is expected to hold its benchmark rate at 4.75 per cent.

The NZ dollar was at US80.62c at 5pm from US80.94c at 8am and US80.08c at 5pm on Friday. It briefly topped US81c to reach a new three-year high on Saturday.

Dealers said the kiwi came under pressure when the silver market plunged in early Asian trading yesterday, sparking concerns about commodity prices.

The Australian dollar recovered from a sharp fall in response the silver price to rise past US$1.1000 for the first time since 1982. It was at US$1.0939 by 5pm from US$1.0898 at the same time on Friday.

The kiwi was at A73.63c at 5pm from A73.46c at the same time on Friday.

The NZ dollar was at €0.5447 at 5pm from €0.5400 on Friday and at 65.66 from 65.31. The trade weighted index was 68.61 from 68.15.

- NZPA