WELLINGTON (Reuters) - The New Zealand dollar dipped early on Monday as uncertainty surrounding the make-up of the next government weighed on the local currency.
The ruling National Party won the largest number votes in a general election over the weekend but neither of the major parties won enough seats to have a majority in parliament, forcing them to rely on the nationalist New Zealand First Party to form a coalition. [nL4N1M40FC] [nL5N1M501B]
The New Zealand dollar <NZD=D4> was 0.31 percent lower at $0.7317.
"At the end of the day we now await to find out who is going to form a coalition with NZ First and that may take some weeks," said Stuart Ive, dealer at OM Financial.
"Every time there is any form of uncertainty in the market that is always going to weigh on things."
Analysts expected the New Zealand dollar to be in for some volatility until the final vote tally, including those from overseas voters, is in on Oct. 7 and negotiations are completed.
(Reporting by Ana Nicolaci da Costa; Editing by Sandra Maler)
