Currency: Dollar rises to US52c mark

The New Zealand dollar settled into a range today having risen to the highest level in about a month on the small cut in the official cash rate cut yesterday.

By 5pm today the NZ dollar was buying US52.00c from US51.24c at 5pm yesterday.

The Reserve Bank of New Zealand yesterday cut the official cash rate to 3 per cent from 3.5 per cent, which was at the lower end of what was expected.

The central bank also signalled smaller future cuts and a base to the easing cycle higher than in other jurisdictions.

The NZ dollar continued rising offshore after gaining in its domestic session. A strong US equities market also helped reduce risk aversion.

The comments about smaller interest rate cuts, if and when, continued to drive sentiment, said Murray Hindley, chief foreign exchange dealer at ANZ Institutional Bank.

"After the big move we had yesterday it has just consolidated," he said.

The next key economic data locally was near the end of the month, he said.

Against the Australian dollar the kiwi was around a three-week high of A79.76c at the open and eased to A79.48c at today's local close from A79.03c yesterday.

Similarly, the NZ dollar rose to its highest level in three weeks against the euro, buying 0.4048 at 8am from 0.3995 at yesterday's local close before ending today at 0.4024.

The trade weighted index rose to 53.16 from 52.50 yesterday.

Currency rates:

5pm today 5pm yesterday

NZ dlr/US dlr US52.00c US51.24c

NZ dlr/Aust dlr A79.48c A79.03c

NZ dlr/euro 0.4024 0.3995

NZ dlr/yen 50.76 49.35

NZ dlr/stg 37.34p 36.92p

NZ TWI 53.16 52.50

Aust dlr/US dl 65.43c 64.82c

Euro/US dlr 1.2926 1.2827

US dlr/yen 97.60 96.28

- NZPA