The New Zealand dollar eased a little as a result of euro weakness, but closed today's session relatively unscathed.
It finished just a tad below its opening on US71.45c, against yesterday's US71.63c close. It ranged between US71.30c and US71.66c.
The softer euro was the key market driver. ANZ Investment Bank chief dealer in Wellington, Murray Hindley, said the kiwi was decoupling from the euro.
"The kiwi's yield and commodity prices were attracting investors and it's hard to see too much downside," he said.
Thursday's current account data had the potential to derail the kiwi.
Traders have already factored in a $1 billion March quarter deficit and a $10 billion annual deficit. Data much worse than that could result in selling.
The euro closed locally at US$1.2140 compared with US$1.2221 yesterday. European Central Bank (ECB) bosses wanted more data before deciding whether an interest rate cut could be justified.
The Australian dollar finished on US77.47c compared with US77.87c yesterday.
The kiwi trade-weighted index ended on 71.54 (71.65), and the monetary conditions index on plus 1134 (1141).
The kiwi was still camped out on the doorstep of 7-1/2 year highs against the British pence. It ended on 39.18 pence from 39.31p yesterday.
On its other major crosses, the kiwi finished on A92.20c (A92.32c), 0.5885 euro (0.5872), 78.16 yen (78.10) and 0.90890 Swiss francs (0.9070).
On the money markets, 90-day bank bill yields closed on 7.05 per cent (7.06), July 2009s on 5.94 per cent (5.92), and April 2015s on 5.81 per cent (5.80).
- NZPA
<EM>Currency:</EM> Dollar retains strength despite euro slide
AdvertisementAdvertise with NZME.