Currency: Kiwi rangebound as US on holiday

The New Zealand dollar was rangebound in thin trading today with US markets closed for President's Day holiday.

The kiwi ended last week at a 17-month low under US67c and closed sharply lower on all crosses, including a near one-cent loss against the Australian dollar.

By 5pm today it was buying US66.89c from US66.73c on Friday. Against the Australian dollar it lost more ground to A90.28c (90.45c).

ANZ Investment Bank strategists said the medium-term target for the New Zealand currency was now US65c.

"While this will not be delivered today, it is a matter of time before the New Zealand dollar again thrusts lower."

New Zealand economic news is light this week, with the exception of external migration figures due tomorrow.

The US dollar slipped against the euro today but traders said the US currency was supported after mixed data late last week did little to alter views that the Federal Reserve will keep bumping up interest rates.

Market players said the US dollar would continue to benefit from expectations that US overnight rates will rise at the Fed's meeting in March and probably again in May.

5pm today 5pm Friday

NZ dlr US66.89c US66.73c

NZ dlr/Aust dlr A90.28c A90.45c

NZ dlr/euro 0.5591 0.5618

NZ dlr/yen 79.00 78.92

NZ dlr/stg 38.34p 38.48p

NZ TWI 68.92 68.98

Australian dollar US74.09c US73.77c

Euro/US dollar US1.1964 US1.1879

US dollar/yen 118.09 118.24

- NZPA