The New Zealand dollar closed below the 45USc mark, a level not seen since early May, as the US dollar caught its second wind.
By 5pm the kiwi was at 44.96USc from 45.35USc at Tuesday's close, having ranged between 44.94c and 45.35c during the day.
Dealers said there had been a muted reaction to yesterday's June quarter retail sales which showed retail sales were still growing but less stridently than before. Seasonally adjusted sales grew 1.2 per cent during the June quarter after price rises were stripped out.
Otherwise, dealers said, it was a US dollar story. The Dow Jones shot up 2.87 per cent on hopes that the Federal Reserve would cut interest rates to shore up the US economy.
"It's not a supportive environment for the New Zealand dollar with ongoing concerns about growth, high risk aversion and now the stronger US dollar," Bank of New Zealand currency strategist Stu Ritson said.
"Add to this a technical picture that reveals a strongly negative directional bias and momentum and the risks remain firmly skewed to the downside."
The kiwi started the year at 41.48USc and hit 50.10USc on June 24 (a rise of 20.8 per cent). All eyes today will be on the June quarter Household Labour Force Survey, the official gauge of employment.
On the crosses at 5pm, the kiwi lost ground against the aussie, falling 1.6Ac in two days to 84.81Ac, a level also not seen for 11 weeks. Against other currencies, the kiwi was trading at 54.38 yen, 29.20 pence, and 0.4645 euro.
- NZPA
<i>Currency:</i> Kiwi crouches below 45USc
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