The New Zealand dollar traded higher against the greenback today despite the local market marking time ahead of tomorrow's Reserve Bank (RBNZ) interest rate announcement.
The RBNZ is not expected to change its 6.5 per cent official cash rate tomorrow morning but the market is anticipating a hawkish accompanying statement.
"The game's stopped until we see the statement and we've been following the US dollar today," a local dealer said.
At 5pm the kiwi was buying US71.21c compared with US70.95c this morning and US71.48c at yesterday's close.
The US dollar gained broadly overnight following a US consumer confidence report which was more upbeat than expected.
However the US dollar had retreated a little after a Chinese official dashed speculation a revaluation of the yuan was imminent.
At 5pm in Wellington the greenback was at 103.57 yen (102.74 at 5pm yesterday) while the euro was at US$1.2990 compared with US$1.2958 this morning and US$1.3028 yesterday.
"We've seen the euro go up and the kiwi and aussie have come up with it," the dealer said.
The Australian dollar was buying US76.71c from US76.40c this morning and US77.01c at 5pm yesterday.
On the crosses the kiwi was buying A92.85c (A92.57c), 0.5483 euro (0.5472), 38.12 British pence (37.94), 73.75 yen (73.24), and 0.8484 Swiss francs (0.8458).
The New Zealand dollar TWI was at 69.45 (69.28) and the monetary conditions index was unchanged at 960.
On the money markets, 90-day bank bill yields were at 6.81 per cent (6.80), November 2006 bond yields were at 6.35 per cent (6.34), July 2009s were at 6.10 per cent (6.09), and April 2015s were unchanged at 6.03 per cent.
- NZPA
<EM>Currency:</EM> Kiwi rises despite local lull ahead of rate call
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