Kiwi dollar falls overnight

The New Zealand dollar fell overnight as the markets awaited key financial news.

By 8am the kiwi was buying US72.26c from US72.74c at 5pm yesterday.

BNZ Capital strategist Mike Jones said currency markets were fairly lacklustre overnight.

For the most part, the major currencies were content to track a sideways range as markets awaited a European Central Bank interest rate decision and the non-farm payrolls report from the United States.

Exceptions were the yen and sterling, with the greenback rising sharply against the Japanese currency on comments from the Japanese Prime Minister that the rapid rise in the yen could not be left "as it is".

The pound was buoyed by comments from a bank of England official that Britain was emerging from recession and policy makers should be wary of stoking asset prices, Mr Jones said.

The pound rose against the NZ dollar, which weighed on the kiwi against the US currency late in the offshore session.

Modest declines in stocks and commodity prices also had an impact on sentiment towards the NZ dollar.

By the local open, the NZ dollar was down to 43.38p against sterling from 43.78p at 5pm. Against the Australian dollar the kiwi fell to A78.04c at 8am from A78.45c at the local close.

The NZ dollar was also down to 0.4801 euro from 0.4819 at 5pm and fell to 63.03 yen from 63.31. The trade weighted index was 64.03 at 8am from 64.40 at 5pm.

- NZPA