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NZ dollar slides against yen

NZ NewswireNZ Newswire 7/04/2016 Tina Morrison

The New Zealand dollar fell to its lowest level against the yen in more than seven months as risk aversion increased the allure of the Japanese currency amid speculation the country's central bank won't intervene to push it lower.

The kiwi touched 72.87 yen and was trading at 73.45 yen at 8am in Wellington, from 74.43 yen on Thursday. The local currency slipped to 67.78 US cents from 68.24 cents.

The New Zealand dollar has dropped 4.6 per cent against the yen so far this week as traders exit bets for its decline, given doubts that the Bank of Japan will intervene to halt its rally.

Traders are betting the BOJ won't intervene in the currency or add to its stimulus package ahead of the G7 meeting in Japan in May, given it faced criticism for its actions at the previous G20 meeting.

"The main theme this week has been the relentless strength of the yen and that has continued over the last 24 hours, indeed accelerated," BNZ's Jason Wong said.

"Japanese officials have been out in force trying to jawbone the yen weaker. Those cries for a reversal have gone unheeded, with the market discounting the possibility of any intervention at current levels, where the yen remains very cheap taking a longer term perspective."

Currency analysts will be keeping an eye on any comment on the outlook for monetary policy in the US from Federal Reserve chair Janet Yellen who is part of a panel discussion at International House.

In New Zealand, the government's monthly financial statements for the eight months through February will be released.

The New Zealand dollar advanced to 90.27 Australian cents from 89.64 cents, it fell to 59.59 euro cents from 59.82 cents, slid to 48.22 British pence from 48.31 pence, and declined to 4.3785 yuan 4.4151 yuan.

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