The New Zealand dollar fell as increasing confidence about the pace of the US economy drove up the greenback and traders continued to weigh the implications for the local economy of weaker dairy prices.
The kiwi fell to 77.55 US cents as at 8am in Wellington, from 77.71 US cents
late yesterday. The trade-weighted index was little changed at 78.10 from 78.13.
The US Federal Reserve's Beige Book reported "widespread" gains in employment, rising consumer spending and a pickup in manufacturing in most regions. It followed the release of the ADP Research Institute's private payrolls report, which showed the economy added 208,000 jobs last month, less than expected but still a robust pace. The official non-farm payrolls data is released on Friday. The US Dollar Index, which measures the greenback against a basket of currencies, is at its highest since early 2009.
"The Beige Book continues the theme that the US remains on track," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. "That story is the driving theme in the market and the US dollar has gained on that."
