The New Zealand dollar remains under pressure after the US levelled criminal charges against telecom giant Huawei on the eve of China-US trade talks.
The kiwi traded at 68.36 US cents at 5pm in Wellington, unchanged on the day but down from 68.68 cents yesterday. The trade-weighted index fell to 73.85 from 74.08 yesterday.
Investors were already jittery about the possible impact of the US-China trade tensions after shares in Caterpillar fell 9 percent and Nvidia Corp tumbled 13.8 per cent in US trading on profit warnings related to softening Chinese demand.
Sentiment weakened further after Acting Attorney General Matthew Whitaker announced that a grand jury in Seattle has returned an indictment that alleges 10 federal crimes by two affiliates of Huawei Technologies. According to a statement from the US Department of Justice, Huawei began a concerted effort in 2012 to steal information about a robot that T-Mobile used to test mobile phones.
Whitaker also announced that a grand jury in New York has returned an indictment alleging 13 additional crimes committed by Huawei, its CFO, its affiliate in Iran, and one of its US subsidiaries. The department says the criminal activity "goes back at least 10 years and goes all the way to the top of the company."