The New Zealand dollar's impressive gains last night evaporated somewhat during today's local session as it followed a weakening euro lower.
At 5pm in Wellington the kiwi was buying US64.33c from US63.88c at the same time last night and US64.65c at 8.30am today, having traded in a US64.20c to US64.58c range.
The Australian dollar was at US70.66c from its US70.45c close here yesterday.
BNZ currency strategist Sue Trinh said it had been a case of "onwards and downwards" for the kiwi.
"Having started off on the local open with a bit of hiss and a roar that minor rally ultimately failed on the day and reversed course.
"The kiwi has been on a downward track throughout the entire session."
Ms Trinh said the kiwi had slumped on continued weakness in the euro.
At 5pm the euro was buying US$1.2027 from US$1.2031 yesterday evening.
Meanwhile, the US dollar had strengthened during today's local session, reversing the general weakness seen overnight, and undermining the kiwi's efforts on the topside, Ms Trinh said.
The US dollar was buying 111.17 yen (110.70).
The kiwi saw little effect from the Reserve Bank of Australia's decision to leave its official interest rate unchanged at 5.25 per cent today, but continued to climb against the aussie unit.
It was buying A91.60c at 5pm (A91.50c last night), its highest level since March last year.
Ms Trinh expected the kiwi to continue trading in its present range of support at US63.80c and resistance at US64.80c until US non-farms payroll data was released on Friday.
M ea nw hile, the kiwi was buying 0.5349 euro (0.5362), 35.30 British pence (35.42), 71.51 yen (70.66), and 0.8242 Swiss francs (0.8270).
The trade weighted index was at 65.79 (65.97), while the monetary conditions index was at plus 648 (661).
On the money and debt markets, 90-day bank bill yields were unchanged at 6.40 per cent, February 2006 bonds were at 6.12 per cent (6.13), July 2009s were at 6.16 per cent (6.24), and April 2013s were at 6.24 per cent (6.31).
- NZPA
<i>Currency:</i> Kiwi's rally runs out of puff as Euro weakens
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