The New Zealand dollar lost another US cent today as it fell to a one-month low against a recovering US dollar.
From US76.81c at 5pm yesterday, the kiwi fell to US75.62c by 5pm today. Apart from a brief dip to around that level a month ago, that wasits lowest level since January.
The US dollar generally strengthened as Federal Reserve Chairman Ben Bernanke said the central bank would strongly resist an erosion in inflation expectations, convincing more investors that rate hikes could come this year.
Dr Bernanke also said the latest surge in energy prices is adding to the dangers from inflation and that the risk of a substantial downturn in the US economy had receded, sparking broad dollar gains and sending US bond yields soaring.
Such comments from the Fed chief, along with European Central Bank officials signalling that an interest rate increase could come as soon as next month, show top central bankers are trying to limit the inflation impact from oil spiking to near US$140 ($187) a barrel.
The NZ dollar eased against other major currencies, briefly dipping to a 22-month low against the euro early today around 0.4830. It closed on 0.4854c against 0.4868 at yesterday's close.
Against the Australian dollar it eased to A79.68c A79.91c.
