The New Zealand dollar traded in a tight range just above US55c today as investors remained sidelined by the war in Iraq.
By 5pm the kiwi was at US54.21c, little changed from its local open of US55.16c and down on Friday's US55.32c close.
Early confidence that the United States-led war with Iraq will be short and decisive is starting to unravel, causing investors to reduce risk and sit on the sidelines, dealers said.
Prime Minister Helen Clark said today she was not convinced that the US and British forces were making quick progress.
"I don't think it is making any dent at all. Clearly this war is going to be prosecuted to the bitter end," she told Television New Zealand.
Since the assault started, currency markets have been choppy, with the value of the US dollar rising and falling depending on perceptions of how well the war was going for the US and its allies.
The longer the conflict goes on, the more money the US has to spend -- pressuring an already expanding fiscal deficit and undermining the greenback.
Among the US unit's key trading partners today the Australian dollar rose to US59.43c from US59.18c on Friday, the euro held its ground at USUS$1.0605 (USUS$1.0604 on Friday) and the greenback strengthened to 120.93 yen (120.35).
Data releases in New Zealand this week include the Westpac McDermott Millar first quarter confidence survey early tomorrow, December quarter gross domestic product figures and the National Bank Business Outlook on Friday, and trade figures and the December quarter balance of payments on Thursday.
On the 5pm crosses, the kiwi eased slightly to A92.90c (A93.21c on Friday), 0.5205 euro (0.5217), 35.24 pence (35.35) and 0.7679 Swiss francs (0.7687). Against the yen it improved a touch to 66.78 yen (66.60).
The Australian dollar was at US$1.0765 (US$1.0730).
On the money market, 90-day bills were steady at 5.85 per cent, the monetary conditions index was at plus 240 (plus 248), and the trade-weighted index was at 61.31 (61.40).
Among the bonds, the April 2004s were at 5.60 per cent (5.61), the November 2006s were at 5.72 per cent (5.72) and the November 2011s were at 6.16 per cent (6.15).
- NZPA
Currency: Kiwi rangebound as nervous investors sidelined by war
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