KEY POINTS:
The New Zealand dollar was mixed but generally weaker going into the long holiday weekend as investors continue to shun risky currencies.
The NZ dollar was trading at US58.55c at 5pm from US58.02c at 8am and US59.04c at 5pm yesterday.
It rose in its domestic session after a bad night offshore but then drifted off highs. Overnight the NZ dollar dipped under US58c briefly, close to five-year low levels reached two weeks ago.
Investors squared up positions ahead of the weekend, which is extended by the Labour Day holiday on Monday.
The yen surged today, hitting a six-year peak against the euro, as tumbling Asian stock markets spurred selling of stocks and higher-yielding currencies.
The Australian dollar fell below 62.7 yen to the lowest level in six years.
The NZ dollar has also been down around six-year lows against the Japanese currency and was 55.95 yen by 5pm.
The NZ dollar is expected to be driven by sentiment about financial markets and the world economy for some time to come.
With two weeks to go to the election the focus will turn to politics and the election inevitably increases uncertainty for markets.
The one percentage point rate cut in the official cash rate this week was viewed positively for although it makes the NZ dollar a lower yielding option it was seen as an appropriate response to the current economic circumstances.
Next week there is trade data, building consents and the National Bank business outlook survey to absorb.
By 5pm the NZ dollar was buying 0.4580 euro from 0.4630 at 5pm yesterday, and was unchanged at A89.35c. The trade weighted index was 59.19 at 5pm from 59.62 yesterday.
- NZPA