The New Zealand dollar bowed to US dollar strength today, as global volatility sent the greenback to seven-week highs.
The kiwi slipped to a four-week low of US61.92c, but made it back to US62.08c by today's close (from US62.57c yesterday).
Lower commodity prices and yesterday's lower retail figures locally had both taken their toll on the kiwi, Murray Hindley, chief foreign exchange dealer ANZ Investment Bank said.
"Obviously with gold plunging overnight and through the Asian markets, we've seen the Aussie also softer in our session."
The Australian dollar was trading at US73.75c (US74.22) at 5pm locally.
Markets are looking to key consumer price data due out of the US tonight, to help assess whether the US Federal Reserve will hike interest rates later this month.
"If it's stronger then obviously we'll see continued [kiwi] weakness back to our next support at US61.60c , and if the CPI's weaker and maybe signals that the Fed may not have to move on the interest rate front, than we may see the kiwi rebound to US62.40c," Mr Hindley said.
Also weighing on the kiwi today was a warning of slower second quarter growth from New Zealand Finance Minister Michael Cullen. He expected growth to be subdued in the light of April's retail sales slipping 0.1 per cent.
The kiwi slipped on its crosses to A84.13c from A84.35c, to 0.4938 euro (0.4977), and to 71.47 yen (71.69).
The trade weighted index was 62.71, down from 63.06.
The following are Reuters currency rates:
5pm today 5pm Tuesday
NZ dlr/US dlr US62.08c US62.57c
NZ dlr/Aust dlr A84.13c A84.35c
NZ dlr/euro 0.4938 0.4977
NZ dlr/yen 71.47 71.69
NZ dlr/stg 0.3380 0.3400
NZ TWI 62.71 63.06
Australian dollar US73.75 US74.22
Euro/US dollar US1.2567 US1.2576
US dollar/yen 115.12 114.56
- NZPA
<i>Currency:</i> Kiwi bows to US dollar pressure
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