The New Zealand dollar was rangebound today as the greenback steadied ahead of new Federal Reserve chairman Ben Bernanke's first monetary policy report later this week.
About 5pm the kiwi currency was buying US67.94c, up slightly from US67.84c at the start of the day.
During the day it was stuck in the US67.79 to US67.94 band, and was also steady on crosses, with investors thought to be staying on the sidelines ahead of domestic economic data later in the week.
Tomorrow's fourth quarter retail sales volume information is expected to show figures edging up 0.1 per cent, while December month sales are expected to rise 0.3 per cent.
The fourth quarter producer price index is due on Thursday, with Government accounts for the six months to December 31 due on Friday.
Finance Minister Michael Cullen is due to appear before Parliament's finance and expenditure select committee on Wednesday.
Markets are also watching the New Zealand liquidity situation after the Reserve Bank on Friday moved to increase the settlement cash level to $2 billion from $500 million to ease any cash squeeze arising from Wednesday's maturing of around NZ$2.5 billion in government bonds.
The greenback struck a six-week high today against the euro, with investors shrugging off a weekend meeting of Group of Eight finance ministers that focused on energy prices and paid little attention to exchange rates.
The US dollar had jumped to multi-week highs against the euro and Swiss franc on Friday, recovering from an initial slide after data showed the US trade deficit swelled more than expected in December and ended 2005 at a record US$725.8 billion.
Traders said the US dollar would likely stay firm ahead of Mr Bernanke's semi-annual monetary policy report.
- NZPA
<EM>Currency:</EM> Dollar rangebound as greenback steadies
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