Late selling triggered by people fearful their currency positions would turn into loss-makers kicked the kiwi dollar off its crutches, and it looks set to break below Tuesday's record low.
The kiwi sustained its recovery from Tuesday's US40.70c bottom for much of the day, holding on to the US41.40c area. But by late evening it slumped to US40.97c from US41.47c at Tuesday's close.
A currency dealer said late trade saw the New Zealand dollar crash through stop-loss positions, accompanying the Australian unit which struck fresh all-time lows below US54c.
The dealer said kiwi trade was again very thin. Despite the negative outlook, market fundamentals were unchanged. However, the market is waiting keenly for tomorrow's release of June quarter current account data since the sheer size of the shortfall between what New Zealand spends and earns overseas is a major weight on the currency.
The Australian dollar closed locally at US53.95c from US54.39c.
- NZPA
<i>Currency:</i> Kiwi slumps in late selling
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