Currency: NZ dollar down slightly ahead of G7 meeting

5.40pm

The New Zealand dollar closed slightly weaker today as the market looks towards the key Group of Seven (G7) meeting in Florida on Friday, a broker said.

At 5pm, the kiwi was at US67.28c, from US67.37c at 5pm on Friday.

Weaker than anticipated United States gross domestic product figures out overnight on Friday saw the greenback wilt, pushing the kiwi up from its US66.94c close on January 30.

The Australian dollar was at US76.25c (US76.45c).

BNZ currency strategist Sue Trinh said the kiwi had traded sideways in a quiet domestic session.

"You could say the kiwi market has shown some appetite and the kiwi is bearing up as the local session comes to a close," she told NZPA today.

"All eyes are on the G7 meeting this weekend and ahead of that you've got the Reserve Bank of Australia meeting (to review its benchmark cash rate) on Wednesday.

"Right now the kiwi's performing very well against the Australian dollar, it's run higher about 200 points since the Reserve Bank of New Zealand raised rates to 5.25 per cent," she said.

Also coming up this week are rate calls by the European Central Bank and Bank of England on Thursday.

It was potentially another "whippy week" for the kiwi, Ms Trinh said.

Meanwhile, the euro was at US$1.2462 (US$1.2411), while the greenback was buying 105.62 yen (105.95 yen).

On the crosses, the kiwi was buying A88.24c (A87.72c), 0.5399 euro (0.53.92), 71.06 yen (70.91), 36.85 British pence (36.85), and 0.8458 Swiss francs (0.8428).

On a trade weighted basis, the New Zealand dollar was at 66.64 (66.42).

The monetary conditions index was at plus 631 (612), and 90-day bank bills were at 5.60 per cent (5.57).

February 2006 bond yields were unchanged at 5.68 per cent (5.70), July 2009 bonds were at 5.93 per cent (5.95) and April 2013s were at 6.05 per cent (6.07).

- NZPA