The kiwi ended today's local session almost US1c lower than where it closed heading into the Easter break last Thursday.
At 5pm today the kiwi was at US70.86c (from US71.84c at 5pm on Thursday), having ranged between US70.38c and US71.05c during the day.
The kiwi has taken a hammering after a recent string of weaker than expected domestic data, and against a strengthening US dollar.
Statistics New Zealand today said the provisional trade balance for February was minus $127 million, against the average forecast by economists of a $76m surplus.
The provisional figures showed imports of $2.77 billion outweighed exports of $2.64b, Statistics NZ said.
This followed GDP data out last week which showed the economy grew a moderate 0.4 per cent in the December quarter, below forecasts and the 0.6 per cent growth in the third quarter.
The 2004 current account deficit, also announced last week, was $9.39 billion, which equated to 6.4 per cent of GDP. It has deteriorated from $5.63b, or 4.2 per cent of GDP, a year ago.
BNZ currency strategist Sue Trinh said she thought the worst could be over for the kiwi following the strong sell-off over the Easter period. "We've had a pretty good 5.4 per cent decline and oftentimes when you get a move of that magnitude the kiwi struggles to sell off...too much further to the downside."
But she remained cautious of the stronger performing US dollar and said a re-test of the US69c to US69.30c range could still be on the horizon.
The US dollar has rallied over the past week, after the Federal Reserve suggested in a statement it might raise rates more aggressively if inflation heats up.
Most market players expect the Federal Reserve to keep raising the benchmark federal funds rate, with some forecasting a rise to around 4 per cent by the end of 2005, from the current 2.75 per cent.
The kiwi was also down against other crosses, and at 5pm was at A91.95c (from A92.86c at 5pm Thursday) .
The trade-weighted index, which measures the kiwi against a basket of other currencies, was at 69.53 (70.21 ).
Meanwhile at 5pm today the aussie was at US77.06c (US77.35c), the euro was at US$1.2936 (US$1.2992), and the greenback was at 107.15 yen (106.20).
The monetary conditions index was at plus 992 (1043).
On other cross rates, the kiwi was fetching 0.5478 euro (0.5530), 37.91 British pence (38.38), 75.94 yen (76.30), and 0.8499 Swiss francs (0.8594).
On the money markets, 90-day bank bill yields were at 7.08 per cent (7.06), July 2009 bonds were at 6.36 per cent (6.35) and April 2015s were at 6.24 per cent (6.22).
- NZPA
<EM>Currency:</EM> Kiwi down almost US1c since Easter
AdvertisementAdvertise with NZME.