The dollar crashed to a record low against the US dollar yesterday - 39.64USc - following the Commerce Commission's third refusal of Shell's offer for Fletcher Energy.
The kiwi was trading at 40.40USc before the announcement.
The previous low for the kiwi was 39.90USc on October 4.
One currency dealer said the announcement thumped the dollar and the weak aussie exacerbated its fall.
"Basically, the Fletcher's announcement pushed it from the 40.40USc area down to the 40.10USc, and then market sentiment and the weaker aussie pushed it lower," he said.
"The implications probably are that the new New Zealand shareholders won't be repatriating their US dollars so there won't be any buying of New Zealand dollars against the US.
"It depends what the sentiment is [whether the kiwi falls further]. Short-term it looks like it has had the effect of driving the kiwi down."
Shell had agreed to acquire Energy in conjunction with American company Apache Corp for a deal with a total value of $4.6 billion - including shares in Capstone and new company Rubicon that Fletcher Challenge planned to issue to its Energy shareholders.
- NZPA
<i>Currency:</i> Dollar dives to all-time low after Energy deal refusal
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