The kiwi dollar closed the month with its head just above US69c after swimming aimlessly below that level for much of the session.
It closed on US69.02, having traded as low as US68.68c. Yesterday it finished at US68.94c.
The local unit is virtually back where it began the month, having retraced gains that saw it touch US70.66c on August 12.
On the local front, there was further confirmation of the economic slowdown with business confidence down another notch and July building data out today showing a further slowdown in construction.
The US dollar was trapped in a narrow range as investors struggled to sort out what record-high crude oil prices mean for currencies and the global economy.
Dealers said worries crude oil prices of over US$70 ($102.79) a barrel would slow consumer spending in the United States were keeping investors cautious, even in the face of US data on Tuesday that showed the American consumer was holding up well.
The surge in oil prices has raised doubts about whether the Federal Reserve will keep raising interest rates into 2006, continuing the tightening campaign that has helped the dollar rebound this year from a three-year slump.
The oil price spike has also led some traders to bet that the economies export-dependent Asian economies such as Japan will slow, hurting their currencies.
In Wellington, the euro closed on US$1.2223 compared to US1.2207 yesterday, while the greenback was buying 111.29 yen from 110.98.
The Australian dollar closed here at US74.79c (US74.85c).
On its crosses the kiwi was buying A92.32c (A92.10c), 0.5648 euros (0.5647), 0.8753 Swiss francs (0.8736), 38.63 British pence (38.43) and 76.79 yen (76.46).
On a trade-weighted basis, the kiwi was at 69.74 (69.92) and the monetary conditions index was at 1005 (999).
On the money market 90-day bank bill yields were steady on 7.05 per cent. Mid-dated bond yields fell in response to the weak data with July 2009 bond yields down at 5.63 per cent, while the April 2015 yields were up a pip on 5.70 per cent (5.69).
- NZPA
<EM>Currency:</EM> Dollar keeps head above 69c
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