The kiwi put on a brave face yesterday, closing above 41USc despite continued weakness in its allies.
At 5pm, the kiwi was at 41.10c, just shy of Wednesday's 41.29c close. Buoyed by overseas buying, the kiwi also rallied on the kiwi/aussie cross, rising to 83.40Ac from 82.68c.
The kiwi's gain was the aussie's downfall however, the Australian unit closing at 49.30USc.
"It is close to the lowest level we have seen in the last 24 hours and not far off its all time low (48.88c)," Bank of New Zealand forex manager Mike Symonds said.
The euro fared little better ahead of an overnight rates decision by the European Central Bank, falling to 88.71USc from 89.36c.
The ECB stands alone among major central banks to have left interest rates unchanged this year.
Mr Symonds said the market was looking increasingly towards a 25-basis-point cut as the slowing world economy became impossible to ignore.
"But there is still a risk that they will hold off until midway into next month before they cut."
Locally, there is mild interest in December quarter GDP data due today. However, the fact that the March quarter is almost complete means the data gives few clues to what is happening now in the economy.
"The kiwi is going down grudgingly and I think it will continue to perform well, except against the US dollar," Mr Symonds said.
- NZPA
<i>Currency:</i> Kiwi staunch as $A dives
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