A revival in the US dollar caused the kiwi dollar to slip back below US63c today.
It ended the week at US62.79c from US63.48c at yesterday's close.
The kiwi's fall was motivated by offshore factors. Upbeat US economic figures and a dramatic sell-off in the gold market helped the greenback recover from a battering on expectations that US interest rates will soon stop rising.
The US dollar rose more than half a per cent against the euro and sterling, rebounding from seven-month lows as investors also pared bets against the US currency on the view that the selling had been overdone, traders said.
The dollar, accustomed to moving in the opposite direction to prices of safe-haven metals, was lifted by a wave of profit-taking on gold and silver, which hit 25- and 23-year highs.
There was little on the local front to sway investors. Air New Zealand's announcement that it is hiking air fares 10 per cent confirmed expectations that the Reserve Bank will deliver a hawkish statement when it reviews interest rates on Thursday.
Economists said it would add 0.2 to 0.3 per cent to the inflation rate which would put inflation up at 3.8 per cent in the June quarter. Economists now believe any cut in interest rates will not come until December.
ANZ Investment Bank strategists said even news of a $100 million eurokiwi issue overnight failed to underpin the local unit. Eurokiwis are New Zealand dollar-denominated bonds issued to European investors.
On its Australian dollar cross, the kiwi dipped to A84.92c from last night's A85.26c close. The aussie also came unstuck against the greenback, trading at US73.91c from US74.43c yesterday.
The New Zealand dollar trade-weighted index eased to 64.10 from 64.62 yesterday.
<EM>Currency: </EM>US dollar revival sees Kiwi slip
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