The fallout from the $14.5 billion current account deficit shock, and a continuing bout of US dollar strength, are likely to extend the losses the New Zealand dollar suffered late this week.
The kiwi had been trading above US62c before the country's biggest ever current account deficit was revealed on Thursday. A lurch lower during the domestic session after the news was followed by further selling overnight on overseas markets.
"The current account was a big negative and that set the ball rolling and the slide was exacerbated by a stronger US dollar across the board," said Mark Elliott of the ANZ.
The kiwi sold off as low as US60.75c before the local market opened for business yesterday, when it was trading just under US61c.
Elliott said the market was looking for further reasons to sell the kiwi during yesterday's session, but when March quarter GDP data came out in line with expectations, it recovered.
He expected the greenback would take another leg up against other currencies, including the kiwi dollar.
More losses likely for kiwi
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