Currency: Dollar drifts lower

The New Zealand dollar struggled to make any headway today as it was deserted, along with the Australian dollar, by investors seeking safer assets.

The kiwi traded between US63.22c and US62.58c during the day, ending at 5pm at US62.77c. That was more than US1c lower than late yesterday afternoon.

"Basically we drifted off on the back of aussie, sterling and euro being sold off," a dealer said.

"Also, it was a bad day on the equity markets etc."

The kiwi was waiting for further direction, he said.

"It looks reasonably soft still today, just following the equity markets basically."

The aussie had weakened more than the kiwi in last couple of days, with the cross-rate lifting slightly to A80.11c from A79.75c at 5pm yesterday.

Items of interest on the calendar this week included an interest rate decision from the US Federal Reserve on Thursday morning followed by local March quarter current account data, and March quarter gross domestic product on Friday.

The yen rose today to one-month highs against the kiwi, euro and Australian dollar as risk-seekers turned doubtful about the sustainability of a hoped-for economic recovery following gloomy comments from the World Bank.

Oil prices declined, and stock markets dropped with Tokyo's Nikkei share average sliding 3 per cent in line with a broad sell-off in US stocks.

Currency rates:

NZ dlr/US dlr US62.77c US63.95c

NZ dlr/Aust dlr A80.11c A79.75c

NZ dlr/euro 0.4529 0.4597

NZ dlr/yen 59.79 61.45

NZ dlr/stg 38.45p 38.75p

NZ TWI 59.74 60.54

Aust dlr/US dlr 78.34c 80.18c

Euro/US dlr 1.3860 1.3912

US dlr/yen 95.24 96.08

- NZPA