The New Zealand dollar drifted lower toward the bottom of the day's range yesterday, as heavy importer and local selling took its toll on a currency already battered by the strength of the US dollar.
The kiwi's softness also pressured the shorter end of the yield curve, with extra weakness flowing through from selling in the 2003 bonds at midday.
A bank dealer said there was reasonably strong correlation between the euro and the local currency, both reflecting US dollar strength.
The NZ dollar's underperformance is being exaggerated, however, by what remains an illiquid market marked by a serious lack of overseas buying interest.
The spot kiwi stood at $0.4483/90 by 5.55 pm, hovering around the day's range of $0.4475-4510.
The Reserve Bank is due to announce its quarterly monetary policy statement tomorrow.
Hammered kiwi drifts downwards
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