The New Zealand dollar was rangebound just below US70c today as the US dollar held its ground on expectation of further interest rate rises by the Federal Reserve.
By 5pm the kiwi was at US69.46c, little changed on its local open of US69.44c, having traded between US69.21c and US69.46c during the session.
With the euro and the Australian dollar both weak, dealers expect the kiwi to retreat further, continuing the downward trend from a high of US71c last Monday.
On the data front, Producer Price Index data out tomorrow is expected to show a 0.9 percent rise on the previous quarter, and July merchandise trade figures are out on Thursday.
Soaring oil prices sent the trade deficit in June to $522 million and the situation is expected to worsen in July.
On its crosses, the kiwi closed at A92.19c, a touch softer than its A92.36c open and steady on Friday's close. It was buying 0.5700 euro (0.5725), 0.8832 Swiss francs (0.8864), 38.61 British pence (38.84) and 76.55 yen (76.95).
In Wellington, the euro rose to $US1.2184 (compared to $US1.2169 at Friday's local close), while the greenback was buying 110.22 yen (110.47 yen).
The Australian dollar rose slightly to US75.34c (US76.25c).
On a trade-weighted basis the kiwi was down at 70.01 (70.38) and the monetary conditions index was at 1024 (1046).
On the money market, 90-day bank bill yields were steady at 7.04 percent, July 2009 bond yields were steady at 5.77 percent, as were the April 2015s at 5.73 percent.
- NZPA
<EM>Currency:</EM> Kiwi rangebound, could soften further
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