Dollar consolidates around US70c

The New Zealand dollar was firm today around the US70c figure.

Dealers said the currency was consolidating in a narrow range in the absence of major drivers.

Manufacturing sales volumes rose in the June quarter, but the value of sales fell as a result of lower prices, particularly for dairy products.

The report from Statistics New Zealand was seen as neutral for the currency market.

By 5pm today the NZ dollar was buying US70.14c, from US69.78c at 5pm yesterday.

The US dollar has come under heavy pressure this month as growing optimism about a global economic recovery encouraged investors to move out of safe havens into riskier investments like the NZ dollar.

Westpac said today that it expected the NZ dollar to continue to appreciate against the Australian dollar and its rise from near eight year lows in May has been justified by economic fundamentals.

There had been an unmistakable improvement in New Zealand's economic outlook relative to Australia, Westpac said.

The NZ dollar was at A81.44c at 5pm today from A81.40c at the same time yesterday.

By 5pm the NZ dollar was up to 63.89 yen from 63.06 at 5pm yesterday, and was little changed at 0.4799 euro from 0.4197. The trade weighted index was 64.03 at 5pm from 63.77 yesterday.

- NZPA