KEY POINTS:
The New Zealand dollar continued to weaken today, driven by sentiment and global credit concerns instead of local data.
The kiwi dollar closed at US69.17c, off its session low of US68.88c and lower than yesterday's close of US69.55c.
Talk of an emergency rate cut helped the kiwi earlier today but ongoing tension in global cash markets and rumours of some companines filing for US bankruptcy protection left investors on edge, the BNZ's chief currency dealer, Mike Symonds, said.
"The reality is that there are still a lot of people that are sceptical, still concerned that we may not have seen the worst of this. Risk appetite is still muted."
Large volumes of maturing uridashi bonds are also thought to be a factor.
The BNZ estimates that $1.5 billion of the $3.5 billion set to mature this month has not been re-invested, indicating there had been some "real money behind the recent NZ dollar weakness".
The kiwi was weaker against its major trading partners today, including the yen , which fell to 79.09 yen (79.99 yen yesterday).
Against the Aussie dollar it fell to A86.47c from A86.72c, although that currency was facing similar issues, Mr Symonds said.
The TWI ebbed lower to 67.12 from 67.57 yesterday.
Dealers said the kiwi was expected to remain within current ranges in the absence of any data or significant market events.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US69.17c US69.55c
NZ dlr/Aust dlr A86.47c A86.72c
NZ dlr/euro 0.5132 0.5166
NZ dlr/yen 79.09 79.99
NZ dlr/stg 34.88p 35.02p
NZ TWI 67.12 67.57
Australian dollar US79.98c US80.22c
Euro/US dollar 1.3476 1.3468
US dollar/yen 114.32 114.92
- REUTERS