The New Zealand dollar continued to lose ground today, ahead of a hectic couple of days of local data.
The kiwi ended the day softer, but continued to hold above US68c as yield attraction offset negatives of worse-than-expected current account data.
At 5pm, the kiwi was buying US68.28c, compared with US68.60c at last night's local close, and traded in a relatively narrow $68.02-$68.38 range.
It was supported by new uridashi issuance, and talk of more issues in the pipeline.
On the data front, the markets remained largely indifferent to September quarter Balance of Payments figures, which hit a record $12.9 billion -- a record in dollar terms -- driven by a blow-out in import costs and soft export earnings
The deficit equates to 8.5 per cent of gross domestic product, the highest since first-quarter 1986.
Economists had expected $12.6 billion annual deficit or 8.3 per cent of GDP.
Tomorrow, third quarter GDP figures are expected to show just 0.4 per cent growth in the September quarter and the annual rate slipping to 2.6 per cent.
Forex dealers said if a growth number is below economists' forecasts, it will scare off investors who would see the country heading toward an ugly high interest rate, high inflation, high debt, and low growth outlook.
The following are Reuters currency rates:
5pm today 5pm Tuesday
NZ dlr/US dlr US68.28 US68.60
NZ dlr/Aust dlr A92.94 A92.77
NZ dlr/euro 0.5752 0.5725
NZ dlr/yen 79.93 80.05
NZ dlr/stg 38.90 38.96
NZ TWI 70.46 70.49
Australian dollar US73.48 US73.93c
Euro/US dollar US1.1872 US1.1988
US dollar/yen 117.106 116.69
- NZPA
<EM>Currency:</EM> Kiwi loses ground, yet holds above US68c
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