The New Zealand dollar held its ground over US$70c today, as the foreign exchange market's attention turned to tomorrow's interest rate decision from the US Federal Reserve.
BNZ currency strategist Sue Trinh said the kiwi "held firm -- a reflection of the United States dollar weakness as we start this week".
At 5pm today the kiwi was buying US$70.62c, up from US$69.70c at 5pm Friday, after trading in a range of US$70.08 to US$70.69.
The US Fed is widely expected to raise interest rates by 25 basis points to 4.25 percent.
The market will be looking at the wording of its accompanying statement to gauge if the tightening cycle has come to an end, in what could bring an end to the greenback's year-long rally.
There has also been further talk of New Zealand dollar-denominated uridashi bonds. The World Bank issues an NZ$88 million two-year bond on Friday.
Ms Trinh said the kiwi's steady position was also based on it now having a "better balance for positioning, following last week's 3 percent decline.
The kiwi had rallied 6 percent in the preceding three weeks.
Renewed yield-related demand and strength in the aussie and euro also led to the kiwi's solid standing.
Tonight, it retreated further from the high of A$95.83c it hit against the aussie dollar last week, softening to A$93.87c at 5pm.
Rates
5pm today 5pm Friday
NZ dlr/US dlr US70.62 US69.70
NZ dlr/Aust dlr A93.87 A93.60
NZ dlr/euro 0.5965 0.5960
NZ dlr/yen 85.31 84.30
NZ dlr/stg 40.11 40.24
NZ TWI 73.00 72.57
Australian dollar US75.19c US74.57c
Euro/US dollar US1.1841 US1.1716
US dollar/yen 120.81 120.73
- NZPA/Reuters
<EM>Currency:</EM> Kiwi holds ground against greenback
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