Profit-taking in the euro-United States dollar currency cross helped push the New Zealand dollar further below the multi-year highs it experienced earlier this week, a broker said.
At 5pm, the New Zealand dollar was at US67.71c (from US68.15c at the same time last night), having traded between US67.60c and US68.20c today.
Overnight on Tuesday the New Zealand dollar hit US68.71c, its highest level since June 1997, trumping a series of other highs since January 1.
At market's close, the Australian dollar was at US77.46c (US77.67c).
Westpac currency strategist Johnathan Bayley said the New Zealand and Australian dollars had drifted lower after the euro deteriorated against the US dollar.
"People have been happy to sell the euro-dollar down all day... I think it's been profit-taking," Mr Bayley told NZPA today.
"However, I still think it (the New Zealand dollar's move down) has been (based on) a broad US dollar move (upward)."
The euro's upward progress against the US dollar, on which the kiwi dollar has been piggy-backing, was clobbered last night by a verbal intervention from European Central Bank (ECB) members.
ECB council member Christian Noyer was among the latest European policymakers to comment on the euro, saying authorities remained vigilant on its level.
At 5pm, the euro was at US$1.2655 (US$1.2737), after testing the key US$1.29 level in recent sessions.
Last night's confirmation of a narrowing US trade deficit -- from US$41.6 billion ($61.67 billion) in October to US$38 billion in November -- had little influence on the New Zealand dollar today, Mr Bayley said.
He expected the Group of Seven meeting in Florida on February 6 to focus on the euro/US dollar level and suggested investors "tread cautiously" until the outcome of that meeting was known.
Meanwhile, the US dollar was buying 106.20 yen (106.24).
On the crosses the New Zealand dollar was buying A87.42c (A87.87c yesterday), 0.5350 euro (0.5351), 71.90 yen (72.40), 36.93 British pence (36.93), and 0.8342 Swiss francs (0.8343).
On a trade weighted basis, the kiwi was at 66.68 (66.97).
The monetary conditions index was at plus 605 (625), and 90-day bank bills were unchanged at 5.30 per cent.
On the debt market, February 2006 bond yields were at 5.41 per cent (5.40), July 2009 bonds were at 5.68 per cent (5.67), and April 2013 bonds were at 5.85 per cent (5.83).
- NZPA
<i>Currency:</i> Dollar dips as investors take profits on Euro-US dollar cross
AdvertisementAdvertise with NZME.