The New Zealand dollar eased today mostly because the US dollar rose.The kiwi was worth 75.17USc at 5pm from 75.62USc at 8am and 75.70USc at 5pm on Friday. It had traded as high as 76.15USc during the weekend.Statistics New Zealand said higher food prices
The New Zealand dollar eased today mostly because the US dollar rose.
The kiwi was worth 75.17USc at 5pm from 75.62USc at 8am and 75.70USc at 5pm on Friday. It had traded as high as 76.15USc during the weekend.
Statistics New Zealand said higher food prices were a key factor in a 1.1% rise in the consumers price index in the September quarter, although the annual rate fell to its lowest level since March 2004 at 1.5%.
Mike Jones, currency strategist at BNZ, said the NZ dollar market took the inflation data in its stride even though it was slightly higher than expected.
"The data paled in comparison to a broad-based bounce in US dollar – which was the theme of day," he said.
Investors were disappointed that US Federal Reserve governor Ben Bernanke did not provide any detail of a quantitative easing in a speech on Friday. The US dollar has been weak on expectations of such an easing.
Mr Jones said the lack of an "all guns blazing" approach caused the US dollar to rise against a range of currencies.
The Australian dollar briefly achieved parity against the US dollar during the weekend but then dived away as investors considered the possibility recent declines of the US currency were overdone.
The Aussie was worth 98.47USc at 5pm, down from 99.12USc at the same time on Friday.
By 5pm today the NZ dollar was buying ¥61.11 at 5pm from ¥61.52 at 8am and ¥61.62 on Friday. It was at 76.30Ac from 76.34Ac at 5pm on Friday, and €0.5412 from €0.5392.
The trade weighted index was down to 66.75 at 5pm from 66.90 at 5pm on Friday.
