The New Zealand dollar ended its domestic session down from its opening level but above a five-month low, close to 68USc, it reached on Saturday.Dealers expect US dollar strength and worries about sovereign debt in Europe to be continuing themes.The NZ do
The New Zealand dollar ended its domestic session down from its opening level but above a five-month low, close to 68USc, it reached on Saturday.
Dealers expect US dollar strength and worries about sovereign debt in Europe to be continuing themes.
The NZ dollar was at 68.68USc at 5pm from 68.94USc at 8am and 69.01USc at 5pm on Friday. It fell as low 68.03USc during the weekend.
Westpac said the NZ dollar fell 2.2% last week and is 10.8% below its peak of 76.35USc last October.
Locally, the focus is on Prime Minister John Key's speech to Parliament tomorrow and retail sales data on Friday. But these events are expected to be overshadowed by any gyrations on global equity markets and the US dollar.
"Risk or fear of it, continues to drive global markets," said Rankin Treasury. Investors are asking who will save governments under threat of fiscal collapse.
Rankin Treasury ponders if the selling of the euro and so-called commodity currencies last week stopped being a correction and became a trend.
"The next few weeks will answer this question."
The fall in the NZ dollar last week was seen as giving exporters some respite and they may take the opportunity to put in place cover at levels undreamt of a few weeks ago.
BNZ Capital senior strategist Danica Hampton said the NZ dollar was the worst performing currency last week.
The NZ dollar was around a 10-week low at ¥61.32, down from ¥61.78 on Friday at 5pm.
By 5pm, the NZ dollar was buying €0.5034 from €0.5030 on Friday.
It was 79.36Ac from 79.49Ac on Friday.
The trade weighted index was 63.98 at 5pm from 64.10 on Friday.
