Currency: Dollar retreats after weekend rise

The New Zealand dollar today retreated from the US64.84c level it rose to during the weekend.

It was US63.95c at 5pm, down from the US64.34c at 8am and little changed from the US63.85c at 5pm on Friday.

There are some big events for currency traders this week with the Federal Reserve's policy meeting, and New Zealand current account data on Thursday and gross domestic product data on Friday.

Rankin Treasury expects the Fed to leave interest rates unchanged but commentary on a lift in long-term US interest rates will be carefully monitored.

"Their actions and words will be pivotal," Rankin Treasury said.

BNZ sees maturing NZ dollar denominated bonds issues in Japan and Europe as a potential downward pressure on the currency in coming weeks.

BNZ estimates $4.6 billion of these bonds are maturing in July. New issuance of NZ dollar bonds may be less than the amount maturing because interest rates are lower.

"These upcoming maturities are a potential downside for the NZ dollar in the next few weeks," BNZ said.

On its trade weighted index the NZ dollar was little changed at 60.54 at 5pm from 60.53 on Friday.

Against the euro the NZ dollar was 0.4597 euro from 0.4590 on Friday evening, and it was 61.45 yen from 61.70.

Against the Australian dollar, the NZ dollar was at A79.75c at 5pm from A79.65c at Friday's local close.

Currency rates:

NZ dlr/US dlr US63.95c US63.85c

NZ dlr/Aust dlr A79.75c A79.65c

NZ dlr/euro 0.4597 0.4590

NZ dlr/yen 61.45 61.70

NZ dlr/stg 38.75p 39.07p

NZ TWI 60.54 60.53

Aust dlr/US dlr 80.18c 80.16c

Euro/US dlr 1.3912 1.3916

US dlr/yen 96.08 96.60

- NZPA