The New Zealand dollar firmed slightly today against its US counterpart, which tumbled against the euro as new Fed chairman Ben Bernanke signalled a pause in the US tightening cyle.
The kiwi closed at US63.36 from US63.04c at 5pm yesterday.
Mr Bernanke said in congressional testimony that "at some point in the future" a pause in rate increases may happen.
He also dealt another blow to the US dollar by saying that global imbalances, a term often used to refer to the gaping US trade deficit and surpluses in Asian countries such as China, may affect the currency.
ANZ Investment Bank chief dealer Murray Hindley said the US dollar was hurt by Mr Bernanke's comments and China's first interest rate increase in 18 months.
The New Zealand dollar was essentially range bound with support at US63.20c and resistance at US63.50c, he said.
Comments by Mr Bernanke talking about the dangers of a large currency account deficit and the need to save more could put the currencies of nations such as New Zealand, with similar problems, under pressure, Mr Hindley said.
The US euro rose to a seven month high US$1.2549 hit yesterday and closed here slightly weaker at US1.2526.
The Australian dollar closed on US75.49c compared with US75.25c and the kiwi strengthened on the cross rate to A83.94c from A83.75c at 5pm yesterday.
The New Zealand dollar trade weighted index firmed to 63.78 from 63.65.
The following are Reuters currency rates:
5pm today 5pm Thursday
NZ dlr US63.36c US63.04c
NZ dlr/Aust dlr A83.94c A83.75c
NZ dlr/euro 0.5056 0.5060
NZ dlr/yen 72.45 72.31
NZ dlr/stg 35.18 35.30
NZ TWI 63.78 63.65
Australian dollar US75.49c US75.25c
Euro/US dollar US1.2526 US1.2453
US dollar/yen 114.33 114.74
- NZPA
<EM>Currency:</EM> Dollar firms as greenback tumbles against euro
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