Dollar slips against greenback
The New Zealand dollar fell overnight against the greenback but remains close to the post-float high.
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The New Zealand dollar has dropped against the greenback overnight but remains above 81USc.
The dollar was sitting at 81.35USc at about 8.30am today, down nearly half a cent from the day’s high of 81.81USc.
The Reserve Bank’s monetary policy statement (MPS), to be released on Thursday along with the latest official cash rate (OCR) announcement, is likely to have a big impact on which direction the dollar goes.
Currency traders aren’t expecting an OCR rise until at least December, and there may not be a rise until next year.
A surprise interest rate rise on Thursday or a hint at earlier-than-expected tightening by the Reserve Bank could send New Zealand’s currency even higher.
Although its rise against the greenback has been blamed partly on the weakness of the US economy, the New Zealand dollar is also strong against other major currencies.
It is trading just under 56€c and close to 50p, both near record highs, but has dropped overnight against the yen, down from a day’s high of ¥65.72 to ¥65.16.
However, the New Zealand dollar remains low against the Australian dollar, buying just under 76Ac this morning, well down from more than 90Ac in 2008.
NBR staff
Tue, 07 Jun 2011
Tue, 07 Jun 2011
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Dollar slips against greenback
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