The New Zealand dollar closed on its lows yesterday as the dollar bloc currencies failed to make up ground against the greenback despite plunging US stock markets.
By 5pm the kiwi was at US48.43c from US48.54c at Friday's local close, having traded between US48.37c and US48.77c throughout the session.
The Australian unit was at US55.47c (US55.74c late Friday), while the euro dipped to $US1.010 ($US1.017).
"The kiwi has been under pressure most of the day thanks to a weaker aussie and also a weaker euro," one local dealer said.
"The fact that the euro was unable to make gains against the US dollar after the Dow Jones got cracked on the weekend is probably part of the reason why there has been uncertainty against the euro."
The Dow Jones industrial average plunged 390.23 points, or 4.64 per cent, to 8019.26, the seventh-largest point decline in its history, on Friday. At one point it dropped as low as 7966.72, its lowest since 1998.
Dealers expected the kiwi to range between US48.30c and US48.60c overnight.
"My bias would be slightly towards the downside," one dealer said.
On the crosses at 5pm the kiwi was buying A87.31c (A87.09c at Friday's close); 56.23 yen (56.26), 30.76 pence (30.65), 0.6991 Swiss francs (0.6991) and 0.4797 euro (0.4772).
The aussie was buying $NZ1.1461 ($NZ1.1482).
On the money market, 90-day bills were at 6.02 per cent (6.03), the trade-weighted index was at 54.54 (54.49) and the monetary conditions index was at minus 328 (minus 332).
On the debt market, the April 2004 bonds were at 5.71 per cent (5.76), the November 2006 bonds were at 6.13 per cent (6.25), and the November 2011 bonds were at 6.47 per cent (6.50).
- NZPA
<i>Currency:</i> Kiwi closes on its lows
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