The New Zealand dollar remained near all-time highs against the Australian currency today, straddling the A95c level through the day.
At one point it edged up to A95.15c, slipping to A95.02 around 5pm. At that time the kiwi was also buying US70.28, just slightly up from its level 24 hours earlier.
The New Zealand currency was also a little higher against the euro, yen and sterling. That took the trade-weighted index, which measures the currency against those of New Zealand's five main trading partners, to 72.94, just shy of the post-float high of 73.0 touched yesterday.
The US dollar was within striking distance of a fresh two-year high around 120 yen, keeping gains made on data that reinforced expectations US interest rates will keep rising in the near term.
The US currency had rebounded on Tuesday as readings for US durable goods orders and new home sales in October and consumer confidence in November all came in stronger than expected.
The New Zealand dollar was underpinned by yield demand, with the Reserve Bank expected to raise interest rates to 7.25 per cent next week.
Despite that, seasonally adjusted building consents for October fell 6.7 per cent on the previous month and by 26 per cent on a year ago.
Analysts said the data pointed to a levelling off in the property and construction markets.
BNZ currency strategist Sue Trinh said the strength of the New Zealand dollar continued to be affected by the same factor that had been in play for the past few weeks -- "an insatiable appetite for yield" at a time when global interest rates were quite low.
This country had the highest interest rates in the developed world, she said.
Along with the expected rate rise by the Reserve Bank next week, the market was starting to build in the possibility of a further 25 basis point hike in January.
In comparison, the Australian cash rate was 5.5 per cent and economists were predicting the Reserve Bank of Australia's next move would be down.
Rates:
5pm today, 5pm Tuesday
NZ dlr/US dlr US70.28 US70.21
NZ dlr/Aust dlr A95.02 A94.92
NZ dlr/euro 0.5964 0.5942
NZ dlr/yen 83.97 83.72
NZ dlr/stg 40.87 40.75
NZ TWI 72.94 72.78
Australian dollar US73.95c US73.96c
Euro/US dollar US1.1786 US1.1815
US dollar/yen 119.46 119.28
- NZPA
<EM>Currency:</EM> Dollar straddles A95c throughout day
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