The New Zealand dollar eased in dull trade yesterday, as usual following the Australian and euro dollars in the absence of fresh local factors.
The unit finished at 39.54USc (40.03c on Friday), trading within a slim 39.38-57c range.
A currency dealer said if the Australian dollar, which has been struggling to rally, went below 51.50USc the kiwi would likely retest historic lows.
Uncertainty surrounding the final outcome of the US presidential elections continues to weigh on trade.
"That's put the market into snooze mode," the dealer said.
Nonetheless, the US dollar remains strong, leaving underlying dynamics between global currencies unchanged, meaning ongoing downside risk for the kiwi.
A victory in the American presidential elections for Republican George W Bush is seen as more supportive of the big dollar than if Democrat Al Gore comes from behind.
The aussie closed locally down at 52.13USc (US52.70c).
On the crosses, the kiwi was at 75.85Ac (75.94c), 27.70 pence (28.03), 0.8957 marks (0.9042), 0.6973 Swiss francs (0.7027), and 0.4580 euro (0.4623).
The TWI closed at 46.31 and with 90-day bill yields steady at 6.63 per cent the monetary conditions index eased to minus 1084 (minus 1037).
- NZPA
<i>Currency:</i> Sleepy kiwi loses half a cent
AdvertisementAdvertise with NZME.