The New Zealand dollar edged up as investors continue to await the outcome of stalled budget talks in the US, as the deadline for lifting the US debt ceiling approaches.
The kiwi traded in a 40 basis point range during Northern Hemisphere trading, about half its normal volatility, edging up to 83.02 US cents at 8am in Wellington, from 82.95 cents at the 5pm market close yesterday. The trade-weighted index advanced to 77.09 from 76.87 yesterday.
Investors largely looked through this morning's release of the Federal Reserve's minutes of its last meeting in September, even as the minutes showed Fed officials still expect to start tapering its monetary stimulus this year and end the programme in mid-2014.
Traders think it more likely that monetary stimulus will continue for longer as a partial US government shutdown since October 1 weighs on the economy.
"The minutes overnight feel unusually historical," said Sam Tuck, senior manager FX at ANZ New Zealand. "We are still sitting here a little bit paralysed, still waiting for news from the US Congress about what they are going to do."