The New Zealand dollar closed on its lows today after meeting strong selling offshore on Friday night.
By 5pm it was trading at US56.12c - down sharply on Friday's close of US56.60c. Its Australian counterpart fared little better at US61.29c (US61.40c on Friday).
That was despite the US dollar dipping below 117 yen in Asian trading on the increased likelihood of war, with Washington seeking United Nations authorisation this week for an attack against Iraq.
In Wellington at 5pm the US dollar was buying just 116.88 yen compared with 117.38 yen on Friday.
The greenback is likely to suffer if the United States goes to war, especially if Washington does so without UN backing and has to shoulder the costs.
The euro also firmed against the US unit and at 5pm here was buying $US1.1023 - close to a four-year high of $US1.1069 hit in New York on Friday and well up on Friday's New Zealand close of $US1.0983.
On the data front, investors will be eyeing retail sales, terms of trade, and food price inflation figures due out later in the week for signs that New Zealand's strong economy is starting to slow down.
New Zealand's economy likely grew 0.8 per cent in the three months to December, the slowest pace in five quarters, because of slowing exports, a government report showed today.
Exports make up 30 per cent of New Zealand's economy and the US is the second-biggest buyer of New Zealand goods.
On the crosses at 5pm the kiwi had slipped back to A91.48c (A92.20c), 0.5092 euro (0.5153), 0.7482 Swiss francs (0.7540), 65.59 yen (66.45) and 35.12 pence (35.40).
On the money market, 90-day bills were at 5.80 per cent (5.81), the monetary conditions index was at plus 210 (plus 259), and the trade-weighted index was at 60.99 (61.59).
The April 2004 government bonds were at 5.35 per cent (5.37), the November 2006s were at 5.28 per cent (5.33) and the November 2011s were at 5.65 per cent (5.70).
- NZPA
<i>Currency:</i> Kiwi closes on its lows
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