You are using an older browser version. Please use a supported version for the best MSN experience.

NZ dollar hits three-year low against yen

NZ NewswireNZ Newswire 16/06/2016 Tina Morrison

The New Zealand dollar touched its lowest level against the Japanese yen in more than three years after the Bank of Japan failed to add further stimulus.

The kiwi hit 72.28 yen overnight, the lowest level since January 2013, and was trading at 73.44 yen at 8am in Wellington, from 73.75 yen at 5pm on Thursday.

The local currency slipped to 70.40 US cents from 70.76 cents.

The Japanese yen soared and the country's 10-year bond yields touched historic lows after the Bank of Japan on Thursday refrained from adding any additional stimulus despite weak inflation.

The decision comes amid uncertainty about the global outlook after the Federal Reserve pulled back its expectations for future rate hikes over coming years and as Britain heads into a vote next week on membership of the European Union.

Campaigns in the UK were suspended after a MP Jo Cox was killed in an attack which may be linked with the referendum.

"The Bank of Japan announced no new easing measures at its meeting yesterday that might have helped to dampen current market enthusiasm for the yen," BNZ's Kymberly Martin said.

In New Zealand, the BNZ-BusinessNZ Performance of Manufacturing Index is due for release as is the ANZ-Roy Morgan consumer confidence survey.

The New Zealand dollar dropped to 49.53 British pence from 49.90 pence after the Bank of England kept monetary policy unchanged and said it had contingency measures ready if required following the UK's vote on EU membership next week.

The kiwi slipped to 95.55 Australian cents from 95.71 cents, weakened to 62.62 euro cents from 62.74 cents, and fell to 4.6393 yuan from 4.6520 yuan.

The trade-weighted index declined to 75.22 from 75.49.

image beaconimage beaconimage beacon