The New Zealand dollar remained under pressure today as the greenback held firm against other currencies.
The kiwi closed at US70.11c, down from US70.30c at yesterday's close and some distance from its seven-week high of US71.10 last week.
Trading had been "very pedestrian," one dealer said.
The kiwi had failed to make headway against the US dollar, which was propped up by news of a sharp rise in American producer prices on soaring energy costs, cementing expectations that US interest rates will rise to keep pace.
The euro fell to US$1.2284 (compared to US$1.2322 yesterday), while the greenback was buying 110.15 yen (109.57 yen). Against the US dollar, the Australian dollar fell to US76.05c (US76.54c)
Locally, news that New Zealander Graeme Hart will pay $1.65 billion for half of Carter Holt Harvey to US company International Paper was expected to keep downward pressure on the kiwi.
However, it gained on the Australian dollar after a collapse in base metal prices, buying A92.19c (A91.88c).
On other crosses, the kiwi was flat at 0.5707 euro, lower at 38.84 British pence (38.91), at 0.8841 Swiss francs (0.8859) and higher at 77.23 yen (77.04).
On a trade-weighted basis the kiwi was flat at 70.38. The monetary conditions index was at 1049 (1050) and on the money market, 90-day bank bill yields were steady at 7.04 per cent, July 2009 bond yields rose to 5.80 per cent (5.77), and April 2015s rose to 5.77 per cent from 5.73.
Today the New Zealand Treasury lowered its growth forecast for the current year in a pre-election economic and fiscal update, in line with market expectations.
The National Bank of NZ regional survey out today also pointed to reduced activity in the second quarter.
- NZPA
<EM>Currency:</EM> Kiwi drifts off
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