Currency: NZ dollar trades in tight range

The New Zealand dollar traded in a tight band today as figures were published showing the labour market remains tight.

About 5pm the kiwi was buying US64.23, having been worth US64.20c at 8.15am from US64.13c at Friday's local close.

Statistics New Zealand's labour cost index (LCI) released today showed non-government wages, excluding overtime, rose 0.7 percent in the first quarter, in line with market forecasts.

In the year to March, private sector wages rose 3 percent -- the biggest annual gain since the survey began in December 1992.

"I think everything in the data will keep the Reserve Bank of New Zealand (RB) worried," Goldman Sachs JB Were economist Shamubeel Eaqub told Reuters.

Citigroup director Annette Beacher said continued firm growth in household incomes meant the RB had "no case to reduce the cash rate this year".

The market is also watching for the household labour force survey -- tracking employment and participation rates -- due out on Thursday.

It is expected to show the unemployment rate stepping up 0.2 percentage points to 3.7 percent according to a Reuters survey of local economists.

While the kiwi held up the US dollar slid nearly 1 percent, hitting an eight-month low against the yen.

The fall in the greenback followed remarks by a top US Treasury official seen as a signal Washington wants the dollar to weaken against the currencies of countries with hefty trade surpluses, especially in Asia, as a way to help fix global imbalances.

The NZ-Australian dollar cross rate was at A83.24c this evening, little changed from this morning's A83.17c. The TWI was at 63.70, also little changed from the 63.72 around 8.15am.

The following are Reuters currency rates:

5pm today 5pm Friday

NZ dlr US64.23c US64.13c
NZ dlr/Aust dlr A83.24c A83.39c
NZ dlr/euro 0.5044 0.5049
NZ dlr/yen 71.70 72.89
NZ dlr/stg 34.50 34.63
NZ TWI 63.70 63.90
Australian dollar US77.15c US76.90c
Euro/US dollar US1.2731 US1.2701
US dollar/yen 111.62 113.67

- NZPA