KEY POINTS:
The New Zealand dollar finished around the start of its day's trading range after taking a big hit over the weekend from a rally in the US dollar.
By 8am today the kiwi was buying US76.44c from US78.46c at 5pm on Friday. By 5pm it had settled back to opening levels, having risen to around US76.80c during the day.
ANZ chief dealer Murray Hindley said the market was already starting to thin ahead of the holidays and that could make the currency volatile.
After the big move in the US dollar the focus was now turning to some big economic statistics due locally this week. These include GDP on Friday, Balance of Payments on Thursday and a statement about the government's fiscal position on Tuesday.
As evidence of the impact of statistics, the US dollar posted its largest daily increase against the euro in almost three years on Friday after strong US consumer price data trimmed expectations for further interest rate cuts by the Federal Reserve.
Traders remain nervous about liquidity in global financial markets and the co-ordinated action to do something about it promised by central banks.
Westpac said if funding auctions starting tonight are successful it will reduce risk premiums across a range of markets, and that may benefit carry trade currencies such as the New Zealand dollar.
The kiwi stayed down across the board today, buying 0.5293 euro at 5pm from 0.5363 at 5pm on Friday, and at 86.51 yen from 88.25.
Against the Australian dollar the kiwi was down to A$88.55c at 5pm from A$89.35c on Friday evening.
The trade weighted index was 71.80 when the local market close today from 72.87 on Friday.
5pm currency rates
NZ dlr/US dlr US76.44c US78.46c
NZ dlr/Aust dlr A88.55c A89.35c
NZ dlr/euro 0.5293 0.5363
NZ dlr/yen 86.51 88.25
NZ dlr/stag 37.86 38.42p
NZ TWI 71.80 72.87
Australian dollar US86.39c US87.83c
Euro/US dollar 1.4452 1.4630
US dollar/yen 113.12 112.43
- NZPA
