The kiwi closed higher today after a the US dollar's recent spate of strength was interrupted, but a local dealer said the greenback's loss of momentum was likely to be temporary.
At 5pm in Wellington the kiwi was buying US67.75c from US67.57c at 8.30am and US67.59c at yesterday's local close. Its range today was US67.42c to USUS67.78c.
A local dealer said the kiwi had closed near its highs " on the back of a generally weaker US dollar dynamic throughout our local session -- it's weakened right across the board".
At 5pm the greenback was buying 112.15 yen (111.86 at 5pm yesterday).
The dealer said the euro had popped back above the US$1.21 level "which has helped give the kiwi extra impetus as well".
By the end of our local session the euro was sitting right on US$1.2100 (US$1.2064).
Meanwhile, the New Zealand dollar also recovered some ground against the aussie with bargain hunting the order of the day after a decline on that cross recently. It was fetching A90.15c (A90.01c).
Against the greenback the aussie was buying US75.16c (US75.13c).
The dealer said the US currency was still looking " fundamentally strong" and therefore the kiwi was likely to resume its recent downward trajectory before too long.
On its crosses this evening, the kiwi was fetching 0.5599 euro (0.5605), 38.49 British pence (38.36), 0.8725 Swiss francs (0.8736) and 75.98 yen (75.63).
The TWI was at 68.75 (68.62) and the monetary conditions index at plus 933 (923).
On the money markets, 90-day bank bill yields were unchanged at 7.04 per cent. July 2009 bond yields were at 5.75 per cent (5.81) and April 2015s were at 5.69 per cent (5.76).
- NZPA
<EM>Currency:</EM> Kiwi closes high on weaker greenback
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