The New Zealand and Australian dollars were battered again on Friday, taking losses for the week to more than 2 percent as investors used hawkish comments from a regional US Federal Reserve official as an excuse to accelerate selling. The New Zealand dollar was hard hit, falling nearly 1 percent on the day to $0.8092, its weakest level since mid-November, and was last fetching $0.8114 at 15.32 pm (0532 GMT).
The Aussie dollar skidded to $0.9736, a fresh 11-month low, from $0.9820 in early trade to last change hands at $0.9757. On a trade-weighted basis, the kiwi hit a six-week low, while the Aussie extended recent hefty losses to 75.2, its lowest since October and moving further off a 28-year peak above 80 set in April.
The New Zealand dollar was down 2.5 percent against the greenback so far, with the Aussie losing 2.7 percent since Monday. Both currencies have dropped more than 5 percent so far this month, after becoming favoured short currencies of macro- and hedge funds. Key support was found at the 2012 low of $0.9581. New Zealand government bonds were mostly flat, brushing off strong demand for an offer of 2023 debt which drew bids four times the amount on offer.