The New Zealand dollar was trapped in a tight range again today, failing to take heart from stronger-than-expected inflation data.
At 5pm, the kiwi was at US69.71c, little changed from its local open of US69.61c, and slightly higher than yesterday's close of US69.46c.
Producer Price Index data out today showed input prices rose 2 percent in the June quarter while output prices rose 1 percent -- both above economists' forecasts for a rise of 0.9 percent and 0.8 percent respectively.
The PPI measures wholesale prices and is an early indicator of consumer price inflation.
But analysts say the data is unlikely to change the Reserve Bank's stance on monetary policy, with the official interest rate likely to remain steady on 6.75 percent in the near term.
That rate -- currently the highest in the industrialised world -- has underpinned the currency in the past year, but with interest rates now climbing in the United States, the kiwi's yield advantage is being steadily eroded.
Looking ahead, the market is expected to switch its focus to Thursday's merchandise trade figures.
Soaring oil prices sent the trade deficit to $522 million in June. Economists polled by Reuters expect a July month deficit of $500 million and a $5.3 billion deficit in the year to July.
The kiwi closed higher against the other key crosses, buying A92.30c (A92.19c at yesterday's close), 0.5710 euro (0.5700), 0.8870 Swiss francs (0.8832), 38.74 British pence (38.61) and 76.60 yen (76.55).
In Wellington, the euro eased to $US1.2210 (compared to $US1.2184 at yesterday's close), while the greenback was buying 109.87 yen (110.22).
The Australian dollar rose slightly to US75.54c (US75.34c).
On a trade-weighted basis the kiwi was at 70.17 (70.01) and the monetary conditions index was at 1035 (1024).
On the money market government bond yields rose one or two basis points on the PPI data. The 90-day bank bill yields were steady at 7.04 percent, while July 2009 bond yields were at 5.79 percent (5.77), and the April 2015s were at 5.74 percent (5.73).
- NZPA
<EM>Currency:</EM> Kiwi rangebound, ignores inflation data
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