Currency: Dollar at six-year low

The New Zealand dollar hit the US50c mark today - the lowest it has been for six years.

The kiwi struggled as the US dollar climbed and as Reserve Bank governor Alan Bollard signalled further interest rate cuts.

The NZ dollar was US50.89c at 5pm, its lowest since December 2002. It was US51.95c at 5pm yesterday.

BNZ Capital currency strategist Danica Hampton said comments by both Finance Minister Bill English and Dr Bollard knocked the currency today.

Dr Bollard said there was room for more interest rate cuts. He was giving a speech the day after he cut the official cash rate by 150 basis points to 3.5 per cent.

The currency fell sharply yesterday when the OCR was cut.

"It is also really part of the global backdrop. The US dollar is firmer against a broad range of currencies so when Kiwi hit the low the euro was low and the aussie was low too," she said.

As a result against the Australian dollar the NZ dollar was little changed at A78.99c from A78.66c yesterday. Against the euro it was 0.3949 from 0.3972.

It was down against the Japanese yen at 45.48 from 46.19 and lost ground against the British pound to 35.58p from 36.02p.

The trade weighted index stood at 51.47 from 51.82 yesterday.

The US dollar rose as deepening concerns about the global recession prompted investors to shed risky assets.

- NZPA