KEY POINTS:
The New Zealand dollar trod a narrow range yesterday, settling after a volatile week as investors sat back to wait for American payroll figures.
Yesterday evening, it was at US76.80c, little changed from the morning's level but higher than Thursday's US76.23c. Yesterday's range was a relatively tight 40 points.
The currency peaked overnight at US77.15c, up from Wednesday's six-week low below US76c.
"We've managed to take a bit of a breather after the week's events," said ANZ Investment Bank foreign exchange manager Murray Hindley. "We'll have to wait for non-farm payroll data to see what the next move will be."
Global volatility caused by US credit concerns has taken the kiwi down from a post-float high around US81c last week.
"If the subprime and equity markets continue to sell off there's a chance of further weakness, but after the moves this week it probably needs some sort of consolidation," Hindley said.
The kiwi rose against the Aussie to A89.56c from Thursday's A89.45c, and the trade-weighted index rose to 73.60 from 73.17.
Markets were taking a breather from the unwinding of carry trades, which resulted in a sell-off of high-yielding currencies such as the NZ dollar and a boost for the Japanese yen.
The US dollar held above a four-month low against the yen before the payrolls report due late last night.
The euro held its gains against the US dollar and the yen after the European Central Bank held interest rates at 4 per cent, but hinted at a possible rate rise in September.
- NZPA
