The New Zealand dollar was lower today against a range of currencies, including the broadly sliding greenback, as investors' appetite for risk deteriorated.Around 8am today the kiwi was buying US70.94c, having continued falling after briefly touching a tw
The New Zealand dollar was lower today against a range of currencies, including the broadly sliding greenback, as investors' appetite for risk deteriorated.
Around 8am today the kiwi was buying US70.94c, having continued falling after briefly touching a two-month high of US73c early on Friday.
BNZ currency strategist Mike Jones said investor sentiment declined despite a week of generally positive US earnings reports.
Factors undermining sentiment included a slightly lower growth rate in China, another batch of weak data from the United States, and cautious minutes from the US Federal Reserve.
Mr Jones said the NZ dollar had also been undermined by position adjustments after heavy buying seen earlier in the week.
"With equities faltering sharply on Friday many of these positions unwound with little in the way of fresh buying interest evident despite the relatively large intraday move," he said.
The factors suggested investors were put off by the events of last week, and appetite for risk currencies had diminished again.
Helped by rising European money market rates, the euro reached a two-month high against the greenback, topping $US1.30, although it later eased.
The US currency also fell to a seven-month low against the yen, with a private survey that showed US consumer sentiment weakened in early July to an 11-month low adding to negative sentiment on the greenback.
The NZ dollar was down to 0.5498 euro and 61.34 yen at 8am today from 0.5578 euro and 62.70 yen at 5pm on Friday.
Against the Australian dollar the kiwi fell to A81.90c at 8am today from A82.15c at 5pm on Friday, while the trade weighted index fell to 66.84 from 67.72.
