KEY POINTS:
The New Zealand dollar dipped on lower than expected May retail sales but generally withstood the blitz of bad news over US mortgage lender Freddie Mac.
ANZ Institutional Bank chief forex dealer Murray Hindley said the kiwi was sold off to a session low of US75.70c after retail sales came in 1.2 per cent down.
But some buying at the lower levels saw the kiwi struggle up to US76.24c before closing at US76.12c, versus Friday's close at US75.79c.
Mr Hindley believed the kiwi would be range-bound ahead of tomorrow's CPI inflationary data. "It still seems to be attracting buyers at US75.60c and sellers US76.40c."
Against the Australian dollar, the kiwi ebbed downwards to A78.64c (A78.92c) and it weakened slightly against the yen at 81.05 (81.20 yen).
The trade-weighted index hardly moved, closing at 67.45 (67.49).
Offshore, the US dollar was looking soggy as the government rushed to the aid of major mortgage lender Freddie Mac and its rival Fanny Mae.
The euro and yen improved on Friday, closing here at 1.5902 (1.5770) while the US dollar was buying 106.44 yen (107.14).
"The USD will remain under pressure as long as the bad news keeps coming, and we're not confident about a repeat of the quick turnaround seen after the Bear Stearns bailout in mid-March," Westpac economists said today.
"The Fed rate hikes that the market is pricing for this year look increasingly doubtful."
Reuters currency rates:
5pm today 5pm Friday
NZ dlr/US dlr US76.12c US75.79c
NZ dlr/Aust dlr A78.64c A78.92c
NZ dlr/euro 0.4789 0.4806
NZ dlr/yen 81.05 81.20
NZ dlr/stg 38.33p 38.34p
NZ TWI 67.45 67.49
Australian dollar US96.82c US96.02c
Euro/US dollar 1.5902 1.5770
US dollar/yen 106.44 107.14
- NZPA