The New Zealand dollar traded a narrow range mostly above the US73c mark today after fears of an economically crippling foot and mouth disease outbreak subsided.
At 5pm today the kiwi was at US73.07c from US73.23c at 8.30am today and US72.94c at 5pm yesterday, having ranged between US72.98c and US73.30c during today's local session.
The kiwi sank as low as US72.53c in evening trade last night after a would-be extortionist claimed to have a vial of foot and mouth virus, and attempted to hold the Government to ransom over its taxation policy. An outbreak of the disease would have huge consequences for New Zealand's still largely pastoral economy.
An Auckland dealer said the kiwi was now back to where it was before the news. "It's been a relatively quiet day anyway in terms of the range."
While the threat was still "lurking in the background" unless there was any further news, it was unlikely to further affect trade in the kiwi.
He said the market was now looking to US trade data tonight and tomorrow's local employment data.
"Obviously if the numbers are strong it's only going to add to cries for further interest rate tightening by the Reserve Bank."
Meanwhile, on its main crosses, the kiwi was buying: A94.24c (A94.23c at 5pm yesterday), 0.5679 euro (0.5677), 77.23 yen (77.05), 38.85 British pence (38.69), and 0.8781 Swiss francs (0.8782).
The trade-weighted index was at 71.51 (71.38), and the monetary conditions index was at plus 1135 (1124).
At 5pm in Wellington the greenback was buying 105.69 yen (105.69), the euro was buying US$1.2868 (US$1.2849), and the aussie was at US77.54c (US77.42c).
On the money markets, 90-day bank bill yields were unchanged at 7.09 per cent, July 2009 bonds were at 6.00 per cent (6.03), and April 2015s were at 5.86 per cent (5.91).
- NZPA
<EM>Currency: </EM>Kiwi shrugs off foot and mouth anxiety
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