The New Zealand dollar today traded a very tight range after yesterday's hawkish monetary policy statement from the Reserve Bank.
At 5pm today the kiwi was buying US71.22c, from US71.42c at 5pm yesterday, having traded between US71.12c and US71.35c during the local session.
RBNZ governor Alan Bollard yesterday held the official cash rate at 6.75 percent, but was hawkish in saying there was no scope to cut rates in the "foreseeable" future.
BNZ currency strategist Sue Trinh said the outlook heading into next week was for the kiwi to remain "very much range bound".
She said there might be some volatility in the foreign exchange market as a result of the G8 meeting over the weekend.
"But as for the kiwi we don't think it will be enough to shake it out if its established ranges.
"We continue to see that US71.50c through to US72c area as very strong resistance and the kiwi has got its work cut out for it in taking that out in the near term," she said.
On its major crosses the kiwi was buying A93.08c (from A93.11c at 5pm yesterday) 0.5822 euro (0.5836), 76.56 yen (76.59), 39.08 British pence (39.09), and 0.8928 Swiss francs (0.8952).
At 5pm in Wellington today the euro was buying $US1.2232 ($US1.2238) the greenback was buying 107.49 yen (107.21) and the aussie was at US76.51 (US76.71c).
The trade-weighted index was at 71.14 (71.25), while the monetary conditions index was at plus 1104 (1110).
On the money markets at 5pm, 90-day bank bill yields were at 7.04 percent (7.03), July 2009s were at 5.81 percent (5.77) and April 2015s were unchanged at 5.65 percent.
- NZPA
<EM>Currency:</EM> Kiwi trades tight range
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