The New Zealand dollar today fell against the United States dollar, which found renewed support as expectations grew of another US rate hike.
At 5pm today the kiwi was buying US70.42c, from US70.70c at the same time yesterday.
The greenback has found broad support as market optimism continues to grow that the economic fallout from Hurricane Katrina would not keep the Federal Reserve from raising US interest rates.
Comments from Dallas Fed President Richard Fisher on Monday that the economic risks created by the hurricane would be temporary bolstered confidence among dealers that the American central bank would lift rates for the 11th straight time on September 20.
This expectation contrasts with local predictions that the Reserve Bank of New Zealand will hold rates steady at 6.75 per cent when it meets on Thursday.
The kiwi continued to gain on the Japanese yen, fetching 77.67 yen at 5pm today, up from 77.41 yen at the same time yesterday.
The yen also fell against the greenback as it surrendered gains it made in the aftermath of a landslide election victory for Prime Minister Junichiro Koizumi.
- NZPA
<EM>Currency:</EM> Kiwi slips as US dollar gains ground
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