The New Zealand dollar picked itself off the floor today after being pounded to a 21 month low of US62.30c earlier in the session.
It ended at US62.70c against yesterday's close of US63.00c.
The currency has fallen around 8 per cent so far this year, as poor domestic economic indicators
increase the risks of investing in New Zealand.
Just a year ago, the kiwi hit a post-float high of US74.65c.
This week, it is bracing for further bad news, particularly the December quarter current account figures due on Thursday. The annual deficit is expected to be a record $13.6 billion, some 9 per cent of GDP.
ANZ Investment Bank strategists said offshore buyers were positioning themselves for the data. They said a lasting break below US62.35c, would pave the way for a fall to US61.50c by tomorrow.
The US dollar firmed a touch in a quiet market, where Japan is on holiday, after US Federal Reserve Chairman Ben Bernanke said short-term interest rates might need to be
The comments he made in a speech in New York were slightly positive for the dollar but were generally balanced, dealers said.
The Australian dollar fell to US72.03c from US72.52c yesterday and the New Zealand cross rate firmed to A87.03c from A86.88c yesterday.
But the kiwi continued its slide against the euro, yen and sterling and the trade-weighted index fell to 64.54 from 64.70 yesterday -- its lowest closing since July 2004.
Rates:
5pm today 5pm Monday
NZ dlr US62.70c US63.00c
NZ dlr/Aust dlr A87.03c A86.88c
NZ dlr/euro 0.5166 0.5176
NZ dlr/yen 72.52 73.24
NZ dlr/stg 35.78p 35.91p
NZ TWI 64.54 64.70
Australian dollar US72.03c US72.52c
Euro/US dollar US1.2135 US1.2170
US dollar/yen 116.56 116.23
- NZPA
