The New Zealand dollar closed easier today despite the US dollar being under pressure from soaring oil prices and potential catastrophe in the form of Hurricane Katrina.
The US dollar fell against sterling and the euro as investors fretted that a surge in crude oil prices above US$70 a barrel could crimp US economic growth.
US crude futures soared to a new record as Katrina strengthened into one of the fiercest storms ever seen in the US. It was threatening oil production facilities in the northern Gulf of Mexico and southern US cities such as New Orleans.
In Wellington, the euro closed on US$1.2318 compared to US$1.2313 on Friday, while the greenback was buying 110.40 yen from 110.05.
The New Zealand dollar closed in the middle of its range at US69.62c, down on Friday's US69.82c local close.
Against the Australian dollar, the kiwi dollar lifted back up over A$92c, ending at A92.15 from its A91.92c opening. The aussie fell to US75.60 from US75.73c at its close on Friday.
On its other key crosses, the kiwi was buying 0.5654 euros (0.5671), 0.8732 Swiss francs (0.8767), 38.56 British pence (38.71) and 76.90 yen (76.86).
On a trade-weighted basis, the kiwi was at 69.93 (70.08) and the monetary conditions index was down at 1014 (1029).
Bond yields fell as fears rose that higher oil prices will slow the economy more than previously forecast. July 2009 bond yields fell to 5.69 per cent from 5.73 per cent on Friday, while the April 2015 yields fell to 5.66 per cent from 5.70 per cent. On the money market, 90-day bank bill yields closed steady on 7.04 per cent.
- NZPA
<EM>Currency:</EM> Dollar falls as markets fret about hurricane, oil
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