The New Zealand dollar drifted lower today ahead of a long holiday weekend and as investors awaited developments in the international economic story.The NZ dollar was at 74.78USc at 5pm, from 74.64USc at 8am and 74.99USc at 5pm yesterday.The US dollar dri
The New Zealand dollar drifted lower today ahead of a long holiday weekend and as investors awaited developments in the international economic story.
The NZ dollar was at 74.78USc at 5pm, from 74.64USc at 8am and 74.99USc at 5pm yesterday.
The US dollar drifted higher as investors cut long positions ahead of the Group of 20 meeting in South Korea at the weekend.
The US dollar's broad rebound from earlier losses came amid questions about the extent of expected economic stimulus measures by the Federal Reserve to boost the US economy.
ANZ bank said the higher US dollar could be put down to nervousness ahead of the G20 meeting starting today. It doubted any meaningful agreement on co-ordinated exchange rate policies would emerge.
With a long weekend approaching, and an interest rate decision next week by the Reserve Bank (RBNZ), the market drifted.
"We expect the RBNZ to hold the OCR at 3% next Thursday. With Governor Alan Bollard effectively giving current market pricing of rates on hold until early 2011 the thumbs up this week, it is hard to envisage any great surprises from the announcement," Goldman Sachs said in a preview.
The NZ dollar was down to €0.5368 at 5pm from €0.5390 at the same time yesterday. It also edged down to ¥60.69 from ¥60.86 but was little changed at 76.29Ac from 76.31Ac yesterday.
The trade weighted index fell to 66.44 from 66.59.
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