KEY POINTS:
The New Zealand dollar made small gains against major currencies today as the greenback steadied after rallying to three-month highs against the yen on better than expected data and the prospect of higher rates.
By 5pm the kiwi was buying US78.07c, up from around US77.70c about 5am today.
The NZ currency trended generally upward during the day, getting a small nudge up to around US78.10c at noon when dairy cooperative Fonterra exceeded expectations by hiking its milk payout by 60 cents per kg of milksolids to a record $7.90 for the 2007-08 season.
The company also beat most predictions when it announced an initial forecast for 2008-09 of $7.00/kg.
Shortly after that the kiwi then fell away before dragging itself back up before the local close.
During the morning the kiwi was little moved by data showing the number of consents for new dwellings rose strongly in April, as three apartment blocks with more than 150 units each got the go ahead.
Figures from Statistics New Zealand showed 771 new apartment units authorised last month, compared with 204 in April 2007.
Excluding apartments, 1602 new housing units were authorised in April 2008, 24 more than in the same month last year.
Against the Australian dollar, the kiwi rose from A81.46c at 8am to A81.67c at 5pm.
The NZ dollar was buying 0.5028 euro at the local close from 0.5023, while against the yen it was up to 82.31 from 82.21. The trade weighted index was 69.70 at 5pm from 69.57.
ANZ bank said the NZ dollar was on the back foot as the greenback found support from higher yields and stronger data, but the kiwi still looked to be stuck in a range.
The April building consent data and increased Fonterra payout had provided some support to the kiwi, ANZ said.
- NZPA
