KEY POINTS:
The New Zealand dollar remained in a tight range close to an 18-day high against the greenback, with firmer stock markets and commodities supporting the currency.
By 5pm the kiwi was buying US58.79c, having ranged between about US58.65c and US59.10c during the day.
The NZ dollar was little changed against the euro, at 0.4322 by the end of the local session from 0.4328 at 8am, while against the yen the kiwi edged down to 54.73 from 54.91.
Against the Australian dollar, the kiwi was barely changed at A89.15c. The trade weighted index was 57.53 at 5pm from 57.72 at 8am.
Investors were seen to be taking a more optimistic view on risky assets as the United States and Germany planned tax cuts to prop up their economies.
Investors are looking to November trade data due out tomorrow for direction.
BNZ Capital said it expected the NZ dollar rate against the greenback to remain volatile, but the backdrop of global recession should ensure bounces above US60c were limited.
The US dollar slipped against the yen, after hitting a near one-month high a day earlier on expectations that a planned US stimulus package would help revive the faltering economy.
"There are expectations for the new administration's economic measures such as possible big tax cuts, and this may underpin the (US) dollar in the near term," said Yuji Saito, head of the FX sales department at Societe Generale.
"But the economic package has not yet been endorsed, so investors are cautious about buying the (US) dollar aggressively," he said.
The yen, which has served as a refuge for investors from wild financial market volatility, strengthened broadly.
Currency rates:
NZ dlr/US dlr US58.79c US58.98c
NZ dlr/Aust dlr A82.15c A82.86c
NZ dlr/euro 0.4322 0.4248
NZ dlr/yen 54.73 54.26
NZ dlr/stg 40.08p 40.71p
NZ TWI 57.53 57.42
Aust dlr/US dlr US71.55c US71.19c
Euro/US dlr 1.3608 1.38.82
US dlr/yen 93.09 91.98
- NZPA
