It was the same old story for the New Zealand dollar yesterday, which came back from a new historic low overnight Tuesday at 39.25USc but remains ruled by euro and Australian dollar moves.
At the nominal 5 pm close of local trading, it was at a record low of 39.37USc.
"The local market tried to buy the aussie dollar up - it got up to 52.24USc - and the kiwi followed it up to a high of 39.60c," Deutsche Bank vice-president of foreign exchange Andrew Burdon said.
Upside resistance for the kiwi was at 39.60-70c. "While it's under there the kiwi is going to struggle to rally in this environment where the euro dollar clearly has risk to the downside," Mr Burdon said.
The European Central Bank meets today (New Zealand time). The currency market will be watching closely for signs of further intervention, although the bank has downplayed the likelihood of boosting the currency in response to any shocks from the troubled Middle East.
The aussie also found a new low overnight, at 51.65USc. It closed in New Zealand at 51.96c.
The euro gains were based on comments from a Federal Reserve official who noted how the strong dollar was hurting United States manufacturers.
- NZPA
<i>Currency:</i> Dollar closes at all-time low
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