The New Zealand dollar today edged lower against the United States dollar, but still remained up on its closing level last night.
At 5pm, the kiwi was at US71.13c (from US70.73c at the same time last night). It started today's session at US71.47c, and traded lower thereafter.
The kiwi's overnight spike against the greenback was on softer than expected US inflation data.
However, on the domestic market today currency investors were looking towards Asia for their directional cues.
"There's been a lot of talk about the yuan revaluation," a BNZ currency spokesman said, adding currency markets viewed such a revaluation as a positive event.
"It was perceived as positive for currencies...basically we've seen consolidation and correction from last night's move," he said.
China's currency, the yuan, is pegged against the US dollar, but there are increasing calls for it to be floated.
Meanwhile, the BNZ spokesman said the kiwi could still slide towards the US66c mark in the medium term.
"We've had a hard and fast move down in the past week, and that's been corrected over the past 24 hours," he said.
"It's still a US dollar story."
The Australian dollar was at US75.87c (US75.53c), the greenback was buying 107.09 yen (107.69) and the euro was buying US$1.2675 (US$1.2608).
The kiwi was at: A93.74c (A93.65c), 0.5612 euro (0.5611), 76.18 yen (76.17), 38.65 British pence (38.60), and 0.8661 Swiss francs (0.8660).
The trade-weighted index was at 70.43 (70.28), while the monetary conditions index was at plus 1053 (1043).
On the money markets, 90-day bank bill yields were unchanged at 7.04 per cent, the July 2009s were unchanged at 5.90 per cent, while the April 2015s were at 5.79 per cent (5.75).
- NZPA
<EM>Currency: </EM>Kiwi edges lower against greenback
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