The kiwi closed a touch lower than its local open today after being sold off on today's weaker than expected local GDP number and taking a roller coaster ride on the euro.
At 5pm, the kiwi was at US70.57c from US70.66c this morning and US71.34c at 5pm yesterday, having traded
between US70.31c to US70.77c.
The March quarter GDP number came in at 0.6 per cent falling short of market expectations of about 0.8 per cent and well below the 1 per cent forecast by the Reserve Bank.
An Auckland dealer said the kiwi had been sold off on the back of that, immediately losing about 30 basis points.
It recovered somewhat before being dragged lower as the euro hit 10 month low below US$1.20 on expectations the European Central Bank may eventually cut interest rates to revive the sluggish euro zone economy.
But by the end of the local session, the euro recovered, taking the kiwi with it, and by 5pm in Wellington it was buying US$1.2038 (US$1.2120 at 5pm yesterday).
Meanwhile, at 5pm in Wellington, the greenback was buying 108.96 yen (108.67) and the Australian dollar was at US77.17c (US77.79c).
On its crosses, the kiwi buying A91.45c (A91.71c), 38.87 British pence (39.19), 0.5863 euro (0.5887), 0.9017 Swiss francs (0.9075) and 76.88 yen (77.52).
The trade-weighted index was at 70.84 (71.35), and the monetary conditions index was at plus 1082 (1119).
On the money markets, 90-day bank bill yields were at 7.04 per cent (7.05), but the GDP number saw government bonds rally across the board - July 2009 bonds were at 5.83 per cent by 5pm (5.90) while April 2015s were at 5.72 per cent (5.77).
- NZPA
