Currency: Dollar consolidates over US64c

The New Zealand dollar traded in a relatively narrow range in its domestic session today.

The currency climbed to its highest level in more than a week on Thursday night as the United States currency fell broadly, and in reaction to the Reserve Bank of New Zealand's Monetary Policy Statement.

The central bank left the official cash rate unchanged at 2.5 per cent but monetary conditions tightened as traders anticipated a recovery that implies higher interest rates.

By 5pm the NZ dollar was buying US64.25c from US63.72c at the same time yesterday.

ANZ Institutional Bank chief foreign exchange dealer Murray Hindley said the currency traded between US64.65c and US64.30c for most of its domestic session.

"It was quite a narrow range given it moved two cents in the last 24 hours," he said.

Next week the domestic economic news agenda is light but there is key economic data due in the United States.

ANZ bank said that while not much could be done about a US dollar that remained out of favour and was pushing the NZ dollar up by default, that was not the full story.

Commodity prices were rising again around the globe as the green shoots thesis dominated sentiment, ANZ said.

"But unfortunately for New Zealand, the strongly rising commodities are generally not the ones that NZ exports."

The NZ dollar was up to 0.4565 euro at 5pm from 0.4535 yesterday, and up to 62.92 yen from 62.32.

Against the Australian dollar the NZ dollar was A78.95c from A78.55c. The trade weighted index rose to 60.62 from 60.20.

Currency rates:

5pm today 5pm yesterday

NZ dlr/US dlr US64. 25c US63.72c

NZ dlr/Aust dlr A78.95c A78.55c

NZ dlr/euro 0.4565 0.4535

NZ dlr/yen 62.92 62.32

NZ dlr/stg 38.85p 38.80p

NZ TWI 60.62 60.20

Aust dlr/US dlr 81.37c 81.09c

Euro/US dlr 1.4082 1.4048

US dlr/yen 97.88 97.80

- NZPA