The New Zealand dollar drifted lower yesterday, as the buying that pushed it above US43c in recent days dried up.
At 5pm the kiwi was at US42.58c from Wednesday's close of US42.92c, while the aussie eased to US51.84c from US52.05c.
"(Kiwi) has started to break above US43c on a couple of occasions recently and the punter market was obviously caught long so it couldn't go up, so it's gone down," Bank of New Zealand dealer Margaret Skilton said.
"It is probably just a good technical correction of the move that we saw straight up last Friday night. We really haven't had much of a fall back since then and I think this is probably it."
Dealers expected the kiwi to track lower overnight, although only mildly, trading between US42.40c and US42.60c.
"I don't think (kiwi's) going to come off a terrific amount from here, but we probably need a bit of a correction before we can move higher again," Ms Skilton said.
On the crosses at 5pm, the kiwi was at A82.14c (A82.46c at Wednesday's close), 48.53 euros (48.33), 57.29 yen (57.55), 29.88 pence (29.98), and 0.7121 Swiss francs (0.7123).
The Trade Weighted Index was at 51.85 (52.04), 90-day bank bills were steady at 4.87 per cent and the monetary conditions index was at minus 694 (minus 677).
On the debt market, the March 2002 bonds were at 4.75 per cent (4.74), the April 2004s were at 5.86 per cent (5.77), the November 2006s were at 6.37 per cent (6.31), and the November 2011s were at 6.63 per cent (6.57).
- NZPA
<i>Currency:</i> Kiwi tracks lower as buyers dry up
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