A surging greenback saw the kiwi fall under US60c today, as the weak aussie dollar also dragged on the New Zealand currency.
At 5pm the kiwi was fetching US59.85c (from US60.85c at 5pm yesterday).
The kiwi ranged between US59.78c and US60.23c during today's local session.
"It (the kiwi) went up above US60.20c for a brief period and then it drifted down again. It's looking a bit heavy at this point in time with the aussie looking pretty vulnerable," said Phil Lindberg of Deutsche Bank.
The Australian dollar took a tumble during last night's offshore session, from US69.56c at 5pm last night to US68.79 by 8.30am this morning.
Speculation is growing that a rate hike is looming in Australia, which would trim its yield advantage.
At 5pm tonight the aussie had slipped further to U68.63c.
Both the kiwi and the aussie also suffered from the surging greenback, which rose overnight after the release of another batch of positive economic data.
Figures released last night showed US April producer prices were 0.7 per cent higher, compared with economists' forecasts of a 0.3 per cent rise, while US April retail sales fell 0.5 per cent, compared with economists' forecasts of a decline of 0.2 per cent.
More US data is due tonight with the release of the consumer price index (CPI).
Mr Lindberg said the CPI figures be a key driver for the kiwi. A strong number could push the greenback up and see the kiwi lose more ground.
On the local front, seasonally adjusted retail sales in the March quarter were up 2.6 per cent on the December quarter, against expectations of a 1.6 per cent rise, according to Statistics New Zealand. This has increased speculation another bump to the official cash rate of 5.50 per cent could be on the cards.
Meanwhile at 5pm in Wellington, the greenback was buying 114.66 yen (113.75), and the euro was buying US$1.1813 (US$1.1908).
On the crosses, the kiwi was buying A87.21c (A87.50), 34.02 British pence (34.40), 68.63 yen (69.28), 0.7795 Swiss francs (0.7866), and 0.5066 euros (0.5110).
The trade-weighted index was at 62.21 (62.89), while the monetary conditions index was at plus 322 (371).
On the debt market, 90-day bank bill yields were at 5.88 per cent (5.87).
The February 2006 yields were at 5.97 per cent (5.94), July 2009s were at 6.22 per cent (6.20), and April 2013s were at 6.38 per cent (6.35).
- NZPA
<i>Currency:</i> Kiwi slips below $US60c
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