Dollar continues decline

The dollar is poised to extend its decline as investors shy away from riskier, or higher-yielding, assets as central bank meetings take centre stage from the sovereign indebtedness of Europe.

The kiwi fell to US82.75c at 5pm from 82.91c at 8am and 82.92c on Friday in New York. The trade-weighted index fell to 73.31 from 73.76 last week.

Traders have started selling down their positions in higher-yielding assets which have been rallying since the start of the year amid expectations Europe would make some tangible steps towards shoring up the region's rising indebtedness and strengthening its financial stability.

That's seen the kiwi dollar eke out losses in yesterday's trading session, having climbed 6.6 per cent this year, and a BusinessDesk survey of strategists expects the currency will end the week lower in a week full of central bank meetings and international economic data.

"The highest performers are unwinding positions, and the kiwi's been one of the best performers of the last three months," said Imre Speizer, market strategist at Westpac Banking. "Tuesday through Friday there's something big every day, and the kiwi has been looking weak so it should come down overall."

A handful of central bank meetings kick off today when Reserve Bank of Australia Governor Glenn Stevens reviews the target cash rate, and is expected to keep it on hold at 4.25 per cent. A growing divide between Australia's mining sector and the rest of the economy has raised expectations Governor Stevens will be forced to cut rates deeper after he sliced half a percentage point from the benchmark rate in November and December.

New Zealand's central bank reviews monetary policy on Thursday, and Governor Alan Bollard is tipped to keep the official cash rate at 2.5 per cent, though analysts will be looking for any shift in the forecast track of rate hikes. Last week, traders started betting on a rate increase in the coming year.

Other central banks meeting this week include the Bank of Canada, Bank of England and European Central Bank.

Meanwhile, Government figures yesterday showed a net outflow of New Zealand migration in January, as growing numbers of Kiwis crossed the Tasman. BusinessDesk