The New Zealand dollar edged back towards US70c today as the US unit slipped against most major currencies.
The kiwi continued to be buoyed by ongoing yield demand and further bond issuance denominated in New Zealand dollars.
It closed at 5pm on US69.76c from US69.33c at the local close yesterday.
The US dollar neared a three-month low against the euro as investors braced for a policy-setting meeting by the European Central Bank and US trade data that could clear the way for more dollar selling.
Few traders expect the ECB to raise its lending rate from 2.25 per cent, but they said the euro could move to a tightening bias just as the US Federal Reserve goes the other way.
At the same time, figures that underwhelm market expectations for the US trade deficit could open the way to more dollar selling, dealers said.
"A lot of people are expecting more dollar weakness, and this could be triggered by a widening US trade deficit and any indication that the ECB could lift rates soon," said a trader at a Japanese bank.
New Zealand's high interest rates continued to attract eurokiwi and uridashi issuers, with a $100 million top up of an existing European investment bank issue overnight.
The local market has little to focus on other than monthly building consents data due tomorrow ahead of NZIER's quarterly survey of business opinion and the consumer price index next week.
The Australian dollar took greater strides against the US unit than the kiwi, rising to US75.54c from US74.98c yesterday and pushing the cross rate to A92.37c from A92.45c.
Rates:
5pm today 5pm Wednesday
NZ dlr/US dlr US69.76 US69.33
NZ dlr/Aust dlr A92.37 A92.45
NZ dlr/euro 0.5745 0.5745
NZ dlr/yen 79.62 79.42
NZ dlr/stg 39.50 39.33
NZ TWI 70.86 70.69
Australian dollar US75.54 US74.98
Euro/US dollar US1.2143 US1.2073
US dollar/yen 114.12 114.52
- NZPA
<EM>Currency:</EM> Dollar edges back towards US70c
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