The New Zealand dollar fell from record highs on a trade-weighted basis and against the pound on speculation it may have run too hard after a string of strong economic figures.
The kiwi traded at 54.40 British pence, little changed from late New York trading on Friday and down from a post-float high of 55.08 pence at the end of last week in Wellington. The trade-weighted index fell to 76.78 from 76.83 in New York and down from 77.46 in Wellington.
The currency was at 84.37 US cents from 84.46 cents in New York.
The kiwi extended a week of gains on Friday when figures showed retail sales grew 2.1 percent in the fourth quarter, beating forecasts and underlining the relative strength of the New Zealand economy.
It ran out of steam during European and US trading and weakened slightly against the yen today after the Group of 20 nations decided not to single Japan out over its weak currency.
"The kiwi went too far, too fast on Friday," says Tim Kelleher, head of institutional FX sales at ASB Institutional. "There was a bit of profit taking." With little economic data locally of note this week, the currency "may drift sideways".
It slipped to 81.88 Australian cents from 81.95 cents in New York on Friday and may fall with Australia's currency after an opinion poll showed declining support for Prime Minister Julia Gillard.
The kiwi fell to 78.87 yen from 79 yen and was little changed at 63.19 euro cents.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Rocket Lab has lift-off, but doesn't make it to orbit
- Crimson Consulting scholarship for Maori could be better, says Fox
- Budget 2017 at a glance
- Kiwi business traveller stranded in San Francisco after United de-planes his wallet and passport
- Budget 2017: Mental health at centre of government’s $321m social investment package
Most listened to
- NBR's Rob Hosking with budget analysis. No lolly scramble but sweeteners aplenty
- Grant Thornton tax partner Murray Brewer with his take on the tax package
- NBR’s Calida Smylie talks to CTU policy head Bill Rosenberg in the Budget 2017 lock up
- OMF Financial’s Nigel Brunel discusses the economic implications of the Budget
- MetroGlass CEO Nigel Rigby on the outlook and market share position
- David Seymour gives Gareth Morgan a serve as the latest political party donations are disclosed
- NBR Radio: best of the week ended May 19, with Grant Walker