The New Zealand dollar remained ranged-bound under US70c today, against a strong US dollar.
At 5pm today the kiwi was fetching US69.28c, from US69.80c at the same time yesterday, having ranged between US69.13c and US69.32c during today's local session.
The kiwi weakened as the US dollar continued to gain strength on interest rate expectations. Minutes from the latest Federal Reserve meeting were released today and they suggested the US central bank would continue raising rates to contain inflation pressures.
Meanwhile the euro weakened amid waning enthusiasm for Germany's new government. The single currency is smarting from concerns that a coalition pact between Germany's main parties might dilute reforms in Europe's largest economy, traders said.
Domestic data due out here over the next week includes August retail sales figures on Friday, followed by third quarter inflation data on Monday.
The consumer price index is expected to show inflation has breached the ceiling of the Reserve Bank of New Zealand's 1-3 percent target band. This will increase pressure for another rate rise when the RB meets later this month.
Yesterday's release of the NZIER business confidence survey left economists with mixed views over whether it was more or less likely to add to interest rate pressure.
The following are Reuters currency rates:
NZ dlr US69.28c US69.80c
NZ dlr/Aust dlr A92.13c A91.18c
NZ dlr/euro 0.5787 0.5800
NZ dlr/yen 79.38 79.60
NZ dlr/stg 39.74p 38.85p
NZ TWI 70.82 70.96
Australian dollar US75.24c US75.75c
Euro/US dollar US1.1976 US1.2030
US dollar/yen 114.53 114.05
- NZPA
<EM>Currency:</EM> NZ dollar dips against US strength
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