The New Zealand dollar had a hectic day yesterday, retracing Wednesday's gains on the back of a surprise rate cut by the Federal Reserve.
At 5pm, the kiwi was at 44.00c from 44.69c at Wednesday's close. It had traded in a range of 44.55-90c overnight before the announcement was made about 7.15am local time.
The Fed move was seen as positive for the US, stimulating a rally on Wall St and a slump in all the major overseas currencies.
"The aussie, the kiwi and the euro, all in tandem were getting sold quite aggressively," BNZ chief currency dealer Mike Symonds said.
The kiwi traded in a range of 44.65-43.75c yesterday.
Mr Symonds picked that following this setback, the kiwi would struggle to make gains beyond the 44.25-50c area in the next few days.
In the longer term however, he said the cut signalled more serious problems ahead for the US - which could see the kiwi make further gains against the greenback. "The medium to longer-term outlook still favours a stronger kiwi from here."
- NZPA
<i>Currency:</i> Dollar slides on US rate cut
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