The New Zealand dollar closed on its lows in thin trading yesterday after Bank of Japan action in Tokyo olstered the US dollar.
The kiwi closed at 53.86/93USc from Friday's 54.02/09c.
A currency dealer said trading was light as Australian markets were closed for Queen's Birthday.
"It was a quiet day with a little more focus on the downside after the BOJ intervened in the yen," he said.
The US dollar rose to 120.77 yen by mid-afternoon Tokyo time, its trongest level since June 8, after apan's central bank began buying US dollars for yen.
The Japanese Government is oncerned a stronger yen could derail Japan's tentative economic recovery by making its exports less competitive.
The local dealer said the BOJ's ction put the kiwi and Australian ollars under pressure but sentiment for the kiwi remained positive.
"There should be enough buyers to hold this thing up in spite of the US dollar/yen. That just looks like a bit of a blip," he said.
The kiwi dipped on the cross to 81.24Ac from 81.49Ac on Friday and fell against most other key currencies.
On the debt market, 90-day bank bills edged down to 4.73 per cent.
Bond yields were higher across the curve, with July 2009s at 6.64 per cent (6.57) and November 2011s at 6.72 per cent (6.64).- NZPA
Japan action softens kiwi dollar
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