The New Zealand dollar fell from its recent highs around US44c today on the back of a weaker euro.
"Basically the kiwi has just meandered its way down today and it has everything to do with the euro," one local dealer said.
"It (euro) has come off under US91c and we have just followed it down along with the aussie."
By 5pm the local unit was at US43.77c from US44.25c at Friday's close, while its Australian counterpart closed at US52.81c (53.42c).
The euro ended locally almost a cent lower at US90.90c (US91.83c).
The antipodean currencies also faced a spot of profit taking today following their recent run up, with a US Labour Day holiday making for slow trade, the dealer said.
On the data front, the market is focused on the Reserve Bank of Australia's rate setting meeting on Wednesday.
Despite Australia's strong domestic landscape with some respectable corporate earnings, the increasingly sluggish global economy means financial markets are now convinced the RBA will cut official interest rates by 25 basis points.
The cash rate now stands at five percent after the RBA's 50 basis point cut in April.
The kiwi was picked to oscillate between US43.50c and US44.05c overnight.
"It is just a short-term pullback. I think we will get above US44c again without any problem," the dealer said.
On the crosses, the kiwi was buying A82.70c (A82.84c at Friday's close) 0.4808 euros (0.4815), 52.00 yen (52.57), 30.06 pence (30.31), 0.9396 marks (0.9418), 0.7287 Swiss francs (0.7298).
The aussie was buying $NZ1.2094 ($NZ1.2074).
The trade-weighted index was at 51.32 (51.50), 90-day bill yields were at 5.84 percent (5.83) and the monetary conditions index tightened to minus 649 (minus 633).
Among the bonds the March 2002s were at 5.68 percent (5.70 percent), the April 2004s were at 6.12 percent (6.08), the November 2006s were at 6.34 percent (6.30), and the November 2011s were at 6.52 percent (6.48).
- NZPA
<i>Currency:</i> Kiwi loses ground on weaker euro
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