Kiwi waits on rate decision

WELLINGTON - The New Zealand dollar was muted yesterday ahead of the Reserve Bank's official cash rate announcement tomorrow, a currency dealer said.

Until the central bank decides whether to raise the cash rate - the benchmark for interest rates - the kiwi would remain quiet, the dealer said.

The kiwi traded in a tight range - between 46.80c and 46.94c - to close at 46.81USc, almost steady on Friday's close.

Holidays coming up in New York contributed to the quietness of the local currency markets, the dealer said.

The Australian dollar closed firmer and above 60USc despite softer-than-expected domestic retail sales and building approvals data.

On the cross rates, the kiwi was at 78.11Ac (78.22c), 49.69 yen (49.31), 30.86 pence (30.80), 0.9608 marks (0.9603), 0.7648 Swiss francs (0.7645), an 0.4913 euros (0.4910).

The Trade Weighted Index was at 51.86 and the 90-day bill yields edged up to 6.85 per cent (6.84).

- NZPA