The New Zealand dollar dribbled lower today and dealers expect more of the same.
"It opened around recent highs because the US equity market closed a little stronger but consistently through the day we saw some reasonably big selling," said Jake Soanes, head of financial market sales at
Westpac.
The NZ dollar was US55.02c at 5pm, from US54.95c at 8am and US55.05c at 5pm yesterday. The low today was US54.69c.
Traders are focusing on an announcement by Fonterra on Friday as the payout to dairy farmers has a large influence on the economy.
The dairy co-operativ e has already carved nearly 6 per cent off its initial forecast for this season's payout to farmers, trimming it on September 24 from $7/kg of milksolids to $6.60/kg.
Mr Soanes said a lower payout would just be another signal that the economy was slowing.
The NZ dollar slipped to a seven week low against the Australian dollar overnight around A84.10c but by 5pm was A85.15c, little changed from 5pm yesterday.
BNZ currency strategist Danica Hampton said a rebound in the fortunes of the Australian dollar, with real money demand noted, had pitched the NZ dollar lower once again against the aussie.
Against the euro, the NZ dollar was 0.4362 from 0.4356 yesterday.
The kiwi was also buying 53.14 yen at 5pm, down from 53.21 yesterday. The trade weighted index was 56.29 at 5pm from 56.31 at 5pm.
5pm today 5pm yesterday
NZ dlr/US dlr US55.05c US55.05c
NZ dlr/Aust dlr
A85.15c A85.20c
NZ dlr/euro 0.4362 0.4356
NZ dlr/yen 53.14 53.21
NZ dlr/stg 36.76p 36.78p
NZ TWI 56.29 56.31
Aust dlr/US dlr US64.55c US64.60c
Euro/US dlr 1.2620 1.2610
US dlr/yen 96.47 96.65
- NZPA
