Subdued data today, including a dip in retail sales, weighed on the New Zealand dollar as the market further discounted an imminent interest rate rise.The kiwi had pushed earlier to its highest level against the faltering greenback in nearly six weeks as
Subdued data today, including a dip in retail sales, weighed on the New Zealand dollar as the market further discounted an imminent interest rate rise.
The kiwi had pushed earlier to its highest level against the faltering greenback in nearly six weeks as investors continued to show an appetite for risk.
However, it lost half a US cent today, hammered down from a high this morning around 73.44USc after the release of soft retail sales figures for July, followed by data showing the housing market was not gathering steam yet.
The Reserve Bank releases its next interest rate decision on Thursday, and the Canterbury earthquake and soft economic data have dampened expectations to a unanimous no-change in the current 3% Official Cash Rate.
The recent events have overshadowed concerns about inflation pressures expected later this year.
By 5pm, the kiwi was at 72.91USc, little changed from yesterday's late afternoon level.
Against the aussie, the kiwi had sunk to 78.11Ac from 78.40Ac at 5pm yesterday. It had spiked up to around 78.70Ac at one point overnight.
The kiwi eased to €0.5659 from €0.5699 yesterday, to ¥60.78 from ¥61.36, and to 47.22p from 47.31p.
The trade weighted index fell to 60.78 from 61.36 late yesterday.
The US dollar hit a new 15-year low against the yen today, amid more political uncertainty as Japanese Prime Minister Naoto Kan faces a challenge from political heavyweight Ichiro Ozawa.
The greenback has also weakened significantly against other currencies, particularly the euro which is benefiting from increasing investor risk appetite.
