Dollar tracks sideways overnight

The New Zealand dollar performed poorly overnight, tracking largely sideways against a softer greenback.

By 8am the kiwi was buying US67.27c, down from US67.54c at 5pm yesterday. At one point the NZ dollar dropped near US66.80c, its lowest level in a fortnight.

BNZ Capital strategist Mike Jones said another disappointing day in equity markets, and weaker than expected US data kept investors in a cautious mood.

With risk appetite shaky, investors sought out the relative safety of the yen, which was the strongest performing currency overnight, Mr Jones said.

Steady selling of the NZ dollar against the Australian dollar also helped weigh on the kiwi against the greenback.

Yesterday's stronger than expected second quarter Australian GDP data was another reminder of the contrasting macroeconomic positions of the antipodean economies.

The NZ dollar was down to 62 yen at 8am from 62.65 at 5pm yesterday, having troughed at a five-week low around 61.70 yen early today.

The kiwi also fell to 0.4714 euro at the local open from 0.4747, dropping to a three-week low around 0.4705 along the way.

Against the Australian dollar the kiwi was down to A80.67c from A81.14c at the local close, having touched a three-week low around A80.45c. The trade weighted index fell to 62.41 at 8am from 62.85 at 5pm.

The yen touched a seven-week high against the US dollar, euro and sterling as a worse than expected US private sector jobs report boosted the safe haven appeal of the Japanese currency.

- NZPA