Dollar falls as US rises against euro

The New Zealand dollar fell today as the US dollar rose strongly against the euro.

"I think we are seeing a reversal of positions we have seen for a long time now," said Derek Rankin of Rankin Treasury.

"The market has been buying NZ dollars, it has been buying gold, it has been buying Australian dollars and it has been buying euros and it has been selling US dollars. As we approach the end of the financial year the market is taking profits on those positions. We are seeing a bit of a clean out going on," he said.

The euro fell against the US dollar to 1.4420 at 5pm, from 1.4532 at the same time yesterday. Key technical support was expected at 1.4500 but the level did not hold. The euro is at its lowest level against the US dollar in three months.

The NZ dollar was at US71.51c at 5pm, down from US72.01c at 8am and US71.76c at 5pm yesterday.

It had topped A80.00c on Wednesday night and was at A80.01c at 5pm from A79.82c at the same time yesterday.

The NZ dollar rose to 0.4957 euro from 0.4953 euro at 8am and from 0.4938 at the local close yesterday.

It was little changed at 64.33 yen from 64.27. The trade weighted index was 65.00 at 5pm from 64.99 yesterday.

- NZPA