The New Zealand dollar was under serious pressure today, attracting sellers from all corners of the globe.
At 5pm the kiwi was buying US66.12c - half a cent below yesterday's close and its lowest point since it was last below the key US66c level in September 2004.
Currency strategists at Forecastweb.com said the kiwi was being sold by United States-based macro, hedge funds and investment houses, European names and Asian and Japanese players.
The market forecaster said a break of US66c would see the unit quickly test levels below US65.90c and US65.30c.
The kiwi's swoon was even more pronounced against the Australian dollar, where the cross rate was hovering around A89.50c at 5pm, three quarters of a cent below yesterday's close and its lowest level in nearly a year.
ANZ National Bank said there was talk in the market that a Japanese securities house suggested staff refrain from marketing New Zealand dollar products.
That advice came as a large tranche of New Zealand dollar denominated bonds were set to mature next month.
In addition to mounting evidence of a slowing economy, the fall of almost six US cents, from a high of just below US72c in early December, went a long way towards delivering the needed loosening in monetary conditions, ANZ National said.
Further, or sustained, weakness in the NZ dollar should significantly reduce the prospect of the Reserve Bank cutting interest rates any time soon, it added.
The Australian dollar held steady against the US dollar, trading at US73.86c against US73.85c yesterday.
Rates:
5pm today 5pm yesterday
NZ dlr US66.12c US66.62c
NZ dlr/Aust dlr A89.50c A90.26c
NZ dlr/euro 0.5547 0.5585
NZ dlr/yen 78.40 78.93
NZ dlr/stg 37.89p 38.22p
NZ TWI 68.28 68.77
Australian dollar US73.86 US73.85c
Euro/US dollar US1.1919 US1.1925
US dollar/yen 118.58 118.52
- NZPA
<EM>Currency:</EM> Dollar put to sword
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