The New Zealand dollar softened to near four-week lows today in the face of a stronger greenback and commodity price concerns.
The kiwi traded tightly within its range, closing near its lows at US61.62c, compared with US62.42c on Friday.
Offshore the greenback hit eight week highs against the yen and the Chinese tightened credit conditions, prompting concern about slowing commodity prices.
"You saw all the dollar block - the aussie, the CAD and the kiwi - get pretty hit hard, and then you're seeing a bit of action in the euro and the yen, which added to the US dollar strength," BNZ currency strategist Danica Hampton said.
"It's really just trading on the back of the majors at the moment."
She said the kiwi was looking a little fragile ahead of a stronger US dollar and local data out this week, namely the current account figures on Thursday, and first quarter GDP figures on Friday.
Analysts believe New Zealand is likely to show modest economic growth for the first quarter, avoiding a recession.
A Reuters poll of 13 economists is forecasting a median 0.7 percent rise in gross domestic product, taking projected annual growth to 2.1 percent, its slowest pace in nearly five years.
Dealers expected the kiwi would trade between US61.90-US61.50c overnight.
Against the Australian dollar the kiwi was buying A83.55c from A84.06c on Friday evening, 0.4897 euro from 0.4938, and 71.28 yen from 71.46. The TWI was at 62.25 from 62.80.
The following are Reuters currency rates:
5pm Monday 5pm Friday
NZ dlr/US dlr US61.62c US62.42c
NZ dlr/Aust dlr A83.55c A84.06c
NZ dlr/euro 0.4897 0.4938
NZ dlr/yen 71.28 71.46
NZ dlr/stg 0.3342 0.3371
NZ TWI 62.25 62.80
Australian dollar US73.75c US74.27c
Euro/US dollar US1.2585 US1.2644
US dollar/yen 115.65 114.72
- NZPA
<i>Currency:</i> Kiwi softens as USD flexes muscles, commodity price fears
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