Stronger than expected producer price data eroded initial gains in the New Zealand dollar today.
The kiwi struggled back from an overnight selloff which sent the currency down almost a cent from yesterday's close of US63.70c.
Today it recovered to a session high of US63.14c, but eased to US63.05c as dealers became cautious ahead of US producer and consumer price due over the next day.
The kiwi dollar was put under pressure by producer price data, which rose 2.7 percent for both input and output prices in the second quarter.
The prices were lifted by high petrol and energy prices, adding strength to the view that interest rates will remain on hold.
On the crosses, the kiwi dollar was virtually flat against the aussie dollar at A83.02c (compared with A83.01c yesterday), lower against the euro at 0.4950 (0.4995) and weaker against the pound at 33.37 pence (33.60p).
The following are Reuters currency rates:
5pm today 5pm Monday
NZ dlr/US dlr US63.05c US63.70c
NZ dlr/Aust dlr A83.02c A83.01c
NZ dlr/euro 0.4950 0.4995
NZ dlr/yen 73.47 74.07
NZ dlr/stg 33.37p 33.60p
NZ TWI 63.11 63.59
Australian dollar US75.94c US76.74c
Euro/US dollar US1.2735 US1.2752
US dollar/yen 116.52 116.29
- NZPA
<i>Currency:</i> Producer prices, US data put kiwi under pressure
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