The New Zealand dollar traded in a tight range today, despite terrorism fears driving a nail into Asian markets.
The Financial Times newspaper in London today reported Al Qaeda was planning attacks in a "big financial centre in Asia", such as Singapore, Sydney or Tokyo, to undermine investor confidence in the region.
"That saw the Japanese yen weaken, which lead the aussie lower and the kiwi followed suit to the day's lows," BNZ currency strategist Sue Trinh told NZPA.
She said the NZ dollar had "pretty much recovered" to close where it started, after trading at a range between 69.81 and 69.83.
At 5pm the kiwi was at US69.82c, little changed from last night's US69.83c local close.
The focus tonight changes to the United States, where Federal Reserve chairman Alan Greenspan will be outlining monetary policy.
In Wellington, the euro closed on US$1.2313 compared to US$1.2312 yesterday, while the greenback was buying 110.05 yen from 109.86.
The aussie fell to US75.73 from US75.87c, while the kiwi slipped to A92.01 (A92.05c).
On its other key crosses the kiwi was buying 0.5671 euros (0.5672), 0.8767 Swiss francs (0.8793), 38.71 British pence (38.68) and 76.86 yen (76.72).
On a trade-weighted basis, the kiwi was at 70.08 (70.06) and the monetary conditions index was up at 1029 (1027).
The money market saw 90-day bank bill yields steady on 7.04 per cent. July 2009 bond yields were down on 5.73 per cent (5.77), while the April 2015s were at 5.70 per cent (5.75).
- NZPA
<EM>Currency:</EM> Kiwi tight as Asian markets quiver
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