KEY POINTS:
The New Zealand dollar lost another US cent today as it fell to a one-month low against a recovering US dollar.
From US76.81c at 5pm yesterday, the kiwi fell to US75.62c by 5pm today. Apart from a brief dip to around that level a month ago, that was its lowest level since January.
The US dollar generally strengthened as Federal Reserve Chairman Ben Bernanke said the central bank would strongly resist an erosion in inflation expectations, convincing more investors that rate hikes could come this year.
Dr Bernanke also said the latest surge in energy prices is adding to the dangers from inflation and that the risk of a substantial downturn in the US economy had receded, sparking broad dollar gains and sending US bond yields soaring.
Such comments from the Fed chief, along with European Central Bank officials signalling that an interest rate increase could come as soon as next month, show top central bankers are trying to limit the inflation impact from oil spiking to near US$140 ($187) a barrel.
The NZ dollar eased against other major currencies, briefly dipping to a 22-month low against the euro early today around 0.4830. It closed on 0.4854c against 0.4868 at yesterday's close.
Against the Australian dollar it eased to A79.68c A79.91c.
The trade weighted index was at 67.69 from 68.22.
Currency rates:
NZ dlr/US dlr US75.62c US76.81c
NZ dlr/Aust dlr A79.68c A79.91c
NZ dlr/euro 0.4854 0.4868
NZ dlr/yen 80.70 80.90
NZ dlr/stg 38.40p 39.01p
NZ TWI 67.69 68.22
Australian dollar US94.88c US96.12c
Euro/US dollar 1.5576 1.5781
US dollar/yen 106.76 105.32
- NZPA
