KEY POINTS:
A fall in business confidence helped push the New Zealand dollar to a one-week low below US78c today.
Business confidence fell to its lowest in a year, according to the NZ Institute of Economic Research's Quarterly Survey of Business Opinion.
A net 37 per cent of companies expected business conditions to worsen in the next six months, more than the net 15 per cent pessimists in the March quarter.
However, companies also reported stretched resources and expected to raise prices, likely to concern the Reserve Bank.
By 5pm, the kiwi was at US77.43c, down from US78.04c late yesterday afternoon.
The kiwi was also softer against other currencies, falling against the Australian dollar to A90.33c from A90.91c. It has fallen from a 17-month high above A91.65c early last Friday.
"After that data this morning, the QSBO, it struggled and certainly through the afternoon session we've seen a break through that US77.75/80c level, and an acceleration to the lows around US77.40c," ANZ chief foreign exchange dealer Murray Hindley said.
"We've had such a strong upmove that a correction's probably been overdue."
He picked a low overnight around US77.20c.
The US dollar remained under pressure on expectations that the Federal Reserve will leave interest rates steady, as other central banks are seen raising rates further.
Activity was subdued ahead of comments from Fed chairman Ben Bernanke, as investors awaited clues about the future path of US monetary policy.
The euro barely budged from the previous day's late New York trade at US$1.3620, staying in a striking distance from a high of US$1.3683 hit in April.
Reuters currency rates:
5pm today 4.30pm yesterday
NZ dlr/US dlr US77.43c US78.04c
NZ dlr/Aust dlr A90.33c A90.91c
NZ dlr/euro 0.5693 0.5729
NZ dlr/yen 95.54 96.51
NZ dlr/stg 38.46p 38.81p
NZ TWI 74.87 75.44
Australian dollar US85.71c US85.83c
Euro/US dollar 1.3602 1.3620
US dollar/yen 123.37 123.65
- NZPA