The kiwi traded a tight range today as the market absorbed the soft economic data released yesterday.
At 5pm today the kiwi was at US70.50c, from US70.77c at 5pm yesterday. It ranged between US70.38c and US70.64 during the local session
BNZ currency strategist Sue Trinh said there was little action on the foreign exchange market today, but the risks for the kiwi were all on the downside.
Soft domestic economic data released yesterday showed a slump in business confidence and a drop-off in the number of building consents issued
"That's seen the market move to expect no rate hikes from the RBNZ next week at its MPS (monetary policy statement)," she said. Ms Trinh said some analysts were now saying rate hikes may now be behind us and the next move could be a lowering.
New Zealand's key interest rate is the highest in the developed world at 6.75 percent and much of the kiwi's strength has been on the basis of its strong interest rate differential compared with other markets.
The RBNZ issues its next monetary policy statement on June 9.
At 5pm today the kiwi was fetching 0.5723 euro (from 0.5711 euro at 5pm yesterday), while the euro was markedly lower against the greenback at A93.34c (A93.63c), 76.32 yen (76.60), 38.73 British pence (39.03) and 0.8790 Swiss francs (0.8817) .
Meanwhile, the greenback was at 108.26 yen (108.25), the aussie was at US75.53c (US75.58c), and the euro was at $US1.2318 ($US1.2391)
The trade-weighted index was at 70.56 (70.73), and the monetary conditions index was at plus 1060 (1074).
On the money markets, 90-day bank bill yields were at 7.01 percent (7.02), July 2009s were at 5.77 percent (5.79), and April 2015s were at 5.66 percent (5.67).
- NZPA
<EM>Currency:</EM> Kiwi range-trades on back of soft data
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