Finance Minister Michael Cullen's gaffe in apparently revealing a lift in interest rates by the Reserve Bank tomorrow failed to stir the kiwi which traded a narrow 14 point range today.
It ended on US64.62c compared with its US64.76c opening and against US64.86c at 5pm yesterday.
The Australian dollar weakened to US69.09c from US69.42c.
Dr Cullen later apologised saying he had inadvertently added the word "today" in answer to a parliamentary question and said bank Governor Alan Bollard "never discloses his decision on interest rates".
The latter statement is likely to prove incorrect tomorrow when Dr Bollard releases the bank's quarterly Monetary Policy Statement.
Westpac currency strategist Johnathan Bayley said it would be hard to find anyone who had doubts that the bank would raise interest rates tomorrow, but eyes will be on whether the bank is signalling that move is the last in the current tightening cycle.
He said there was consensus among economists that the statement "will be fairly hawkish -- ie they will talk tough".
"The market is pricing in less than an even chance that the bank will follow through in October (with another rate rise), but a better than even chance of another hike by year end".
Mr Bayley said a hawkish statement would underpin the kiwi on the crosses but it would take "more than a relatively hawkish statement -- ie a strong statement -- to get a good burst out of the kiwi".
The euro closed on US$1.2094 (US$1.2069) while the greenback was fetching 109.50 yen (109.80 yen).
On the crosses, the kiwi was buying A93.51c (A93.74c) 0.5344 euro (0.5375) 36.41 British pence (36.38), 70.79 yen (71.25), and 0.8200 Swiss francs (0.8240).
The trade weighted index was at 66.16 (66.40), and the monetary conditions index at plus 697 (712).
In the money market, 90-day bank bill yields were at 6.57 per cent (from 6.58) while in the bond market the February 2006s were at 6.19 per cent (6.24), July 2009s fell to 6.18 per cent from 6.23 per cent and April 2013s also fell to 6.18 per cent from 6.23 per cent.
- NZPA
<i>Currency:</i> Cullen gaffe fails to stir kiwi dollar
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