The New Zealand dollar drifted lower for most of a quiet session but recovered to finish near where it started.The dollar was 69.98USc at 5pm from 70.03USc at 8am and 69.80USc at 5pm yesterday. It had dropped to about 69.65USc overnight in the wake of the
The New Zealand dollar drifted lower for most of a quiet session but recovered to finish near where it started.
The dollar was 69.98USc at 5pm from 70.03USc at 8am and 69.80USc at 5pm yesterday. It had dropped to about 69.65USc overnight in the wake of the Reserve Bank's decision yesterday to leave the official cash rate unchanged at 2.5%.
Today the focus was on disappointing retail sales data for January.
"The headline number was a little bit stronger but the more important ex-auto number was weaker than expected, so the pulse of spending continues to disappoint," said BNZ strategist Mike Jones.
The data had the most impact on the cross against the Australian dollar, which was at 76.38Ac at 5pm. It traded as low as 76.29Ac, just off the 76.20Ac nine-and-a-half year low last week.
"New Zealand interest rates relative to Australian interest rates are at the lowest level in 15 years," Mr Jones said.
He expected the focus to return to the outlook for the global economy and sovereign debt situations with a light local economic data diary next week.
The yen dipped today on speculation that the Bank of Japan could further relax monetary policy, while the US dollar was softer ahead of US retail sales data, Reuters reported.
The NZ dollar was at ¥63.41 at 5pm from ¥63.00 at the same time yesterday. It was at €0.5109 from €0.5120 yesterday.
The trade weighted index was 64.61 at 5pm from 64.58 yesterday.
