The New Zealand dollar was dragged down by its Australian counterpart near the end of yesterday's session, having held near 41.40USc for most of the day.
At 5 pm the kiwi traded at US41.25c, compared with Tuesday's close of 41.42c. The aussie traded at 51.90USc, down from 52.14c.
Under the usual merry-go-round effect in currency markets, the aussie has fallen because of the weaker euro, which was undermined by greenback strength.
"Just the last couple of days has seen a shift again in the aussie, just continuing [weakness] of the global outlook has seen the aussie really take a bit of a hit again," one local dealer said.
"I would have thought both aussie and kiwi would be sold on rallies, if we see any, because the aussie will continue to look heavy."
The euro continued falling, closing in New Zealand at 85.32USc from 85.93c. The drop was sparked by mounting evidence of slowing economic growth in the euro zone.
Dealers said the NZ current account data on June 26, followed the next week by gross domestic product figures and the cash review, should spark up the kiwi market.
- NZPA
<i>Currency:</i> Weak euro hurts kiwi
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