The kiwi dollar rose against all currencies today as traders refocused on the attraction of New Zealand's high interest rates.
The currency closed the local session at US69.34c from US69.20c at 5pm yesterday, having ranged between US69.26c and US69.48c.
BNZ currency strategist Sue Trinh said that having cleared US69.20c, the kiwi was unlikely to face strong resistance in the short-term until it reached US69.85c-US70.00c.
The kiwi also closed higher against the aussie, fetching A92.26c from A91.91c at 5pm yesterday.
Figures showed Australia's trade deficit widened sharply in November to over A$2 billion ($2.8 billion) for the first time since March 2005, driven by a 7 per cent surge in imports after the delayed release of incoming goods at Australian ports.
Economists called the result a "shocker" and it comes on top of yesterday's weaker-than-expected retail sales.
The US dollar crept generally higher, but remained in sight of three-months lows against the euro and the yen on expectations the Federal Reserve will soon end its 18-month cycle of dollar-boosting interest rate rises.
It fell to its lowest since October against the euro on Friday and then against the yen on Monday after last week's disappointing US jobs report added momentum to a sharp sell-off of the US currency.
"The diminishing prospect of more Fed rate hikes after January is hurting the dollar," said Mitsuru Sahara, a senior trader at Tokyo-Mitsubishi UFJ Bank.
The euro was buying US$1.2058 against US$1.214 here yesterday while the dollar was fetching 114.66 yen from 113.94 yesterday.
The Australian dollar eased to a US75.13c close from US75.30c yesterday.
Rates:
5pm today 5pm Monday
NZ dlr/US dlr US69.34 US69.20
NZ dlr/Aust dlr A92.26 A91.91
NZ dlr/euro 0.5750 0.5700
NZ dlr/yen 79.51 78.87
NZ dlr/stg 39.27 39.11
NZ TWI 70.68 70.32
Australian dollar US75.13 US75.30
Euro/US dollar US1.2058 US1.214
US dollar/yen 114.66 113.94
- NZPA
<EM>Currency:</EM> Dollar rises against all currencies
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