The New Zealand dollar weakened against US dollar strength today, as views that the US Federal Reserve would raise interest rates prevailed.
The kiwi traded tightly and at 5pm closed at US70.30c, down on yesterday's close of US70.52c.
"I think overnight it would be hard to see it too much outside of that," ANZ Investment Bank's chief forex dealer Murray Hindley said.
Today's trading was a US dollar story as the greenback recovered from sluggish trading last week.
Oil prices had fallen slightly, a report on US inflation was relatively tame, and data showing US industrial production was lower than expected did little to alter the view that interest rates there would tighten.
Overnight all eyes will be on awaiting a US producer price index for July, which is expected to be slightly up.
Local forex dealers said the kiwi looked to be running out of steam after its recent strong rally.
The kiwi dollar has been the strongest performing currency in the past month, with a gain of 5 per cent, driven by a weaker US dollar and strong yield-related demand.
On its crosses, the kiwi clawed back gains against the aussie during the session, closing at A91.88c (A91.86c yesterday) on yield-driven trade.
Resistance overnight would be around A92c, Mr Hindley said.
The kiwi slipped slightly against the euro at 0.5707 (0.5712), the British pound at 38.91 pence (38.99), and the Swiss franc at 0.8859 (0.8866). It was buying 77.04 yen (77.12), while the Australian dollar was buying NZ1.0884 ($1.0890).
Elsewhere, the Aussie was down against the greenback buying US76.54c (US76.79c), while the US dollar was buying 109.57 yen (109.36).
The euro slipped to 1.2322 (1.2347).
On a trade-weighted basis the kiwi was at 70.38 (70.47). The MCI was at 1050 (1057).
On the money market, 90-day bank bill yields were steady at 7.04 per cent. July 2009 bond yields were on 5.77 per cent (5.79), and April 2015s eased to 5.73 per cent.
Local data still to come this week includes Treasury's pre-election economic and fiscal update tomorrow morning, a National Bank economic activity report for the second quarter out tonight, and monthly external migration figures on Friday.
- NZPA
<EM>Currency:</EM> Kiwi dollar sags as greenback bounces back
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