Dollar firm around 11 month high

The New Zealand dollar held today around 11-month highs against the greenback and reached a more than four month high against the Australian dollar.

The NZ dollar was US68.68c at 5pm from US68.45c at 8am and US68.52c at 5pm yesterday. It peaked in overnight trading at US68.98c, according to Reuters data. It moved sideways early in today's session and firmed in the afternoon.

"Having broken new ground overnight, just, the NZD easily reversed the gains. This should be a clear enough signal to many that the (US68c to US69c) congestion zone is not an easy nut to crack," ANZ said.

Against the Australian dollar, the NZ dollar rose to A82.11c today, its highest level since April. By 5pm it was challenging that level at A82.08c, from A81.85c at 5pm yesterday.

There were reports of demand from an investment bank but the Australian dollar was also affected by lower oil price.

The major currencies traded in narrow ranges today as the August holiday period continued in the northern hemisphere.

Higher yielding and commodity-linked currencies also continue reflect investor sentiment, which is currently focused on the volatile Shanghai sharemarket, which was firmer today.

The NZ dollar was near the 10-1/2-month high against the euro at 0.4804 by 5pm from 0.4795 yesterday.

It was at 64.65 yen from 64.45 yesterday. The trade weighted index rose to 63.82 from 63.66.

Currency rates:

5pm today 5pm yesterday

NZ dlr/US dlr US68.68c US68.52c

NZ dlr/Aust dlr A82.07c A81.85c

NZ dlr/euro 0.4804 0.4795

NZ dlr/yen 64.65 64.45

NZ dlr/stg 42.05 41.75

NZ TWI 63.82 63.66

Aust dlr/US dlr 83.68 83.72

Euro/US dlr 1.4302 1.4299

US dlr/yen 94.18 94.07

- NZPA