The New Zealand dollar's slide against most major currencies was checked today, but it continued unabated against the Australian dollar.
The kiwi dropped to a new four-year low of A83.42c versus the aussie, compared with A83.97c at yesterday's local close.
While the kiwi eased to US61.01c against the greenback from US61.15c yesterday, the Australian dollar rose strongly to US73.13c from US72.82c.
On the local scene, NZIER's quarterly survey of business opinion showed businesses confidence picked up in the March quarter although firms remained generally pessimistic amid talk the economy could already be in recession.
A net 49 per cent of firms expected conditions to deteriorate over the next six months, up from 61 per cent last quarter.
ANZ economists said the rebound in business confidence seemed subdued compared to the depreciation in the New Zealand dollar.
"Whilst the rebound in confidence is certainly encouraging, the absolute level remains historically low and the magnitude of the improvement is not statistically significant."
On a trade-weighted basis, the New Zealand dollar fell 10.3 per cent over the quarter, dropping 11.1 per cent against the US dollar and 7.4 per cent versus the Australian dollar.
The US dollar was generally steady ahead of a monetary policy decision from the Bank of Japan and on increasing confidence that the US currency's interest rate advantage won't narrow soon.
The market consensus is for the BOJ not to raise overnight rates until the third quarter, which would be the first such action in six years, traders said the prospects for US rates were key to currency moves.
Among major currencies, "the yen is least likely to see higher interest rates in the near future", said the chief trader at a European investment bank in Tokyo.
The euro was buying US$1.2117 from US$1.2111 yesterday while the dollar was at 118.41 yen against 118.04.
5pm today 5pm Monday
NZ dlr US61.01c US61.15c
NZ dlr/Aust dlr A83.42c A83.97c
NZ dlr/euro 0.5033 0.5047
NZ dlr/yen 72.22 72.17
NZ dlr/stg 34.98p 35.04p
NZ TWI 62.84 62.99
Australian dollar US73.13c US72.82c
Euro/US dollar US1.2117 US1.2111
US dollar/yen 118.41 118.04
- NZPA
<EM>Currency:</EM> Dollar loses further ground against Australian dollar
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