The New Zealand dollar fell sharply in tandem with the Australian dollar today.
"The kiwi has been under pressure all day," said a Wellington senior dealer. "You'd have to say it is consolidation at a lower range."
It closed at US55.39c, having traded in whippy New York conditions as low as US55.25c. It closed yesterday at US56.11c.
The Wellington dealer said it appeared that some large long-kiwi-short-euro positions had been unwound.
The Australian dollar closed off its lows at US60.53c compared with US61.51c yesterday.
The kiwi had broken some key supports and was seen trading between US55.00c and US55.50c. Some dealers said it was a healthy correction for both the kiwi and the aussie dollar.
The euro was sitting just below four-year highs against the greenback, closing at $US1.1093 compared with $US1.0961 yesterday.
On the crosses at 5pm, the kiwi was buying A91.46c (A91.23c), 0.5018 euro (0.5075), 0.7371 Swiss francs (0.7441), 64.90 yen (65.56) and 34.48 pence (35.05).
On the money market, 90-day bills were at 5.83 per cent (5.81), the monetary conditions index was at plus 158 (plus 204), and the trade-weighted index was at 60.32 (60.90).
The April 2004 government bonds were at 5.35 per cent (5.32), the November 2006s were at 5.30 per cent (5.26) and the November 2011s were at 5.69 per cent (5.64).
- NZPA
<i>Currency:</i> NZ dollar takes sharp tumble
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