The New Zealand dollar firmed a tad today in a market where all the influence was from offshore.
It finished in uneventful local trading at US70.43c, a touch firmer than yesterday's US70.35c local close.
The US dollar edged down against the euro but found broad support from growing expectations the Federal Reserve will keep raising interest rates despite devastation wrought by Hurricane Katrina.
Despite the day's dip, the US dollar has recovered about 1.7 cents against the euro since it hit a three-month low last Friday, and has regained around 1.7 yen since marking its lowest level versus the yen in two and a half months on Monday.
The euro was buying US$1.2424 compared with US$1.2421 at yesterday's local close.
Next week's focus is likely to turn local. Firstly, on Thursday, there is the Reserve Bank's quarterly review of monetary condtions, where the bank is expected to leave rates on hold despite increasing inflation pressures, and secondly the general election on Saturday may influence the currency.
A change of Government is unlikely to significantly change the outlook for the Reserve Bank although a National government would limit the bank's powers to intervene in the currency market.
Dealers are picking a change of government would result in a short-term firming in the kiwi.
- NZPA
<EM>Currency:</EM> Kiwi holds ground against stronger US dollar
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