The New Zealand dollar closed below US69c today after the US dollar firmed overnight on concern of intervention against the euro.
The kiwi closed at US$68.77 from US$69.11c at 5pm yesterday.
It traded in a very narrow range between US68.66c and US68.77c.
Meanwhile, the Australian dollar slipped to US$77.23c from US78.00c yesterday.
Overnight reports raised concerns about a possible European Central Bank (ECB) intervention to sell euros and buy dollars and a rate cut in the euro zone to prevent currency strength.
German chancellor Gerhard Schroeder said yesterday the ECB Bank should consider countering the euro's rise against the dollar by adjusting interest rates, a call that came after a key index of German business sentiment registered its first fall in months.
The euro has risen by more than 50 per cent against the dollar from its record low of US82 cents in October 2000 creating worries about prospects for European exporters.
The euro slipped to US$1.2503 from US$1.2689 last night while the dollar was buying 108.87 yen, compared with 108.12 at the same time here yesterday.
Currency strategist at Westpac, Johnathan Bayley, said the market has been hearing talk about possible ECB intervention for the past two to three weeks.
"There was nothing new in that."
He said a speech by US Federal reserve chairman Alan Greenspan to the House Budget Committee advocating the budget be balanced by cutting pensions was more likely to have pushed the US dollar up.
Mr Greenspan gave a positive outlook on the US economy, leading to speculation the Federal Reserve could boost rates sooner rather than later.
On the crosses, the kiwi was buying A89.05c (A88.65c), 0.5503 euro (0.5451), 74.92 yen (74.75 yen), 36.68 British pence (36.56), and 0.8660 Swiss Francs (0.8580).
The trade-weighted index rose to 68.23 (68.00), while the monetary conditions index was at plus 747 (731).
The 90-day bank bill yields slipped to 5.62 per cent (5.63). The February 2006 yields were at 5.54 per cent (5.57), July 2009 bonds were at 5.75 per cent (5.77) and the April 2013s were at 5.90 per cent (5.92).
- NZPA
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