The New Zealand dollar slipped back under US68c today, despite broad-based weakness in the US dollar.
At 5pm today the New Zealand was buying US67.92c, from US68.44c at the same time yesterday.
The market is waiting on the Reserve Bank's official cash rate review on Thursday. The RB is expected to hold the OCR steady at 7.25 per cent, but the market is waiting to see how strongly worded the accompanying statement is.
The New Zealand dollar continued to be weighed down by news last week that officials had warned Japanese investors about the risks of investing in New Zealand dollar denominated bonds.
The kiwi edged down despite the greenback weakening against other major crosses. The US dollar hit four-month lows against the euro and the Swiss franc today following more comments from Federal Reserve officials indicating the central bank's 18-month tightening cycle could be nearing an end.
St Louis Fed President William Poole said the Federal Reserve could soon stop raising interest rates. His comments followed a speech in which New York Fed President Timothy Geithner focused on the United States' record and current account deficit and the threat it posed to the global economy and financial markets.
The Fed is expected to raise its funds rate to 4.5 per cent next Tuesday. But further rises are seen as uncertain, as chairman Alan Greenspan is set to retire after that meeting.
Rates:
5pm today 5pm Monday
NZ dlr/US dlr US67.92c US68.44c
NZ dlr/Aust dlr A90.44c A90.84c
NZ dlr/euro 0.5530 0.5589
NZ dlr/yen 78.01 78.42
NZ dlr/stg 38.06 38.41
NZ TWI 68.89 69.39
Australian dollar US75.11 US75.39
Euro/US dollar US1.2285 US1.2243
US dollar/yen 114.83 114.67
- NZPA
<EM>Currency:</EM> Kiwi slips under US68c
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