The New Zealand dollar lost another half a cent against the US dollar as nervousness about the current account deficit weighed the kiwi down.
At 5pm, the kiwi was buying US68.60c from US69.11c at last night's local close.
The Australian dollar experienced a milder fall -- to US73.93c from US74.63c and the kiwi fell back to A92.77c, having opening stronger at A93.04c from yesterday's A92.60c local close.
Holders of kiwi dollars are nervous in the wake of yesterday's Government half-yearly economic and fiscal update, predicting lower budget surpluses, reduced growth forecasts and increased borrowing.
Tomorrow, a current account deficit will be unveiled, expected to show a nearly $5 billion quarterly deficit and an annual shortfall of $12.6 billion -- 8.3 per cent of GDP.
That will be followed on Thursday by GDP data 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 towards an ugly high interest rate, high inflation, high debt, low growth outlook.
Dealers and economists said they see less and less chance of the Reserve Bank hiking interest rates again in January.
Despite all this, US currency dealers predict a big pre-Christmas issue of uridashi bonds -- in New Zealand and Australian dollars.
Paresh Upadhyaya, currency portfolio manager with Putnam Investments, in Boston, said uridashi -- bonds issued by Japanese institutions in local currencies -- worth 55 billion to 60 billion yen should be issued before December 22.
The following are Reuters currency rates:
5pm today 5pm Monday
NZ dlr/US dlr US68.60 US69.11
NZ dlr/Aust dlr A92.77 A92.60
NZ dlr/euro 0.5725 0.5754
NZ dlr/yen 80.05 80.38
NZ dlr/stg 38.96 39.03
NZ TWI 70.49 70.78
Australian dollar US73.93 US74.63c
Euro/US dollar US1.1988 US1.2010
US dollar/yen 116.69 116.29
- NZPA
<EM>Currency:</EM> NZ dollar loses another half cent
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