The New Zealand dollar pulled back some ground from overnight lows today but it continues to be seen as vulnerable.
About 5pm it was buying US62.67c and A81.15c, from US63.02c and A81.45c about 8.30am today.
The kiwi had hit an overnight low of US62.44c, its lowest level in two weeks, and four-year low around A81.10c.
It is under pressure on increasing expectations tomorrow's household labour force survey employment figures will be weaker than forecast.
The Bank of New Zealand said the New Zealand currency continued to look vulnerable and under performed its commodity cousins Australia and Canada.
Investors were continuing to sell on the cross with the Australian dollar as outlooks diverged between Reserve Banks in Australia and New Zealand, while interest rate differentials narrowed.
"There have been some very large real money flows behind the recent NZD/AUD moves, and this has attracted selling interest from funds, momentum accounts and model names," the BNZ said.
The kiwi looked to be heading for the February 2002 low of A80.78c.
Adding to the kiwi's difficulties was the business-friendly Australian budget delivered last night, promising personal tax cuts and promoting a stronger economic recovery.
Around 5pm the TWI was at 62.04 from 62.35 at 8.30am and 62.70 24 hours earlier.
International focus is on the US Federal Reserve meeting on Wednesday (local time). The Fed is expected to raise interest rates by 25 basis points to 5 per cent, but may also signal a halt in the current round of tightening after 15 straight increases.
The following are Reuters currency rates:
5pm today 5pm Tuesday
NZ dlr US62.67c US63.09
NZ dlr/Aust dlr A81.15c A82.11
NZ dlr/euro 0.4909 0.4972
NZ dlr/yen 69.60 70.43
NZ dlr/stg 33.58 33.98
NZ TWI 62.04 62.70
Australian dollar US77.21c US76.85
Euro/US dollar US1.2762 US1.2695
US dollar/yen 111.07 111.62
- NZPA
<EM>Currency:</EM> NZ dollar continues to be vulnerable
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