KEY POINTS:
The New Zealand dollar eased today against a broadly rising greenback.
By the local close today, it was buying US78.49c from US78.91c at 5pm yesterday. During a two-hour period early in the offshore session it dropped half a cent from above US79c.
The broad rise in the US dollar overnight came on the back of a better-than-expected report on US durable goods orders for April.
New orders for long-lasting US goods fell 0.5 per cent last month, lower than the 1 per cent drop expected by analysts in a Reuters poll.
Stripping out transportation, orders rose 2.5 per cent, the biggest gain since July, the Commerce Department said.
Demand for the greenback also rose after reports showed rising German inflation and oil prices eased from recent record highs.
Bank of New Zealand currency strategist Danica Hampton said the NZ dollar had been pressured by the broadly stronger greenback and steady selling of the kiwi against the Australian currency.
"Over the past 24 hours, active NZD selling has been noted from real-money accounts, leverage funds and speculative players," she said today.
New Reserve Bank figures showed further evidence of economic slowdown. Household borrowing grew at its slowest pace in over 17 years in April, backing views domestic spending was cooling rapidly in the face of high interest rates and soaring costs.
Other data released by the central bank showed it sold a net $352 million of New Zealand dollars on the spot foreign exchange market during April, up from a net $240 million sold in March.
The RB data also showed its net open currency position, which includes revaluations, was $417 million higher to a net long position of $3.741 billion.
The NZ dollar also slid against the Australian dollar, to A81.68c from A82.09c at 5pm yesterday. The aussie held near a 25-year high against the US dollar, ending the local session on US96.07c from US96.13c yesterday.
The trade weighted index fell back to 69.79 from 70.
Moves in oil prices are seen as key for the US dollar, as surging oil prices have fanned fears about the ability of US consumers and businesses to weather the credit- and housing market-led downturn.
- NZPA