The New Zealand dollar fell to its lowest level in a decade against the Australian currency, but managed to stay above US75c against the greenback for much of early Saturday.
By 8am today, the kiwi was buying A73.89c against the aussie, down from A74.07c at 5pm on Friday, but some
improvement from the Saturday morning level around A73.65c - the lowest since September 2000.
Against the US dollar, the kiwi was at US75.05c at 8am today, similar to its level at 5pm on Friday, as it struggles up from the post-quake low around US74.25c last Thursday morning.
ANZ said attempts by the NZ dollar to recover, supported by the aussie, continued to be frustrated by local conditions and outlook.
Today the kiwi might by dragged back into the US74c zone, tainted by the Australian dollar which should under-perform following a proposal to lower Chinese growth expectations, ANZ said.
In an online chat with Chinese citizens, Premier Wen Jiabao said China was slightly lowering its annual economic growth target, to 7 per cent from 8 per cent, in a move that signals a shift in government priorities to put the breakneck economy on a more sustainable footing.
The US dollar broadly rebounded against other currencies, including the euro, helped by a retreat in oil prices after Saudi Arabia stepped up crude supply. The inverse relationship between the greenback and oil strengthened last week.
Uncertainty over the situation in the Middle East and Africa remains high as investors fear the uprising in Libya could spread to other oil-producing countries. A spike in energy prices could weigh on US consumer spending and crimp global economic growth.
The NZ dollar rose to 0.5459 at 8am today from 0.5431 at 5pm on Friday, while slipping to 61.35 yen from 61.51. The trade weighted index was little changed at 66.37.
- NZPA
