The New Zealand currency continued a steady upward course today, but its progress was checked by a slight recovery in the US dollar.
The kiwi traded on average volumes in a narrow range of 15 points from US43.66c-43.81c.
Factors pegging back the kiwi are a brighter economic outlook for the US and an expected interest rates cut by the US Federal Reserve tomorrow. Analysts are expecting a cut of 25 basis points.
One dealer said the New Zealand market would wait for those results. "I don't see much happening until we get those numbers out of the way."
Generally though the outlook was still good for the kiwi.
"The trend is still for a weaker US dollar...It's pretty positive for the kiwi," the dealer said.
Over recent days the kiwi has been riding on the back of the euro and Aussie , strengthening as the greenback weakened.
But last night the US dollar had its biggest gain in six weeks against the euro amid speculation the currency's 9 percent decline since July wasn't justified.
That saw the kiwi ease from US44.09c at yesterday's close - a six-month high - to close at US43.74c today.
On the crosses at 5pm the kiwi traded at A81.90c (A82.39c yesterday's close), 52.80 yen (53.03), 30.28 pence (30.49), 0.9372 marks (0.9382), 0.7272 Swiss francs (0.7288), and 0.4791 euros (0.4796).
The aussie was buying $NZ1.2118 ($NZ1.2147).
The trade-weighted index was at 51.36 (51.64) and, with 90 day bills at 5.83 percent (5.86), the monetary conditions index eased to minus 643 (minus 616).
On the bond market the March 2002s were steady at 5.76 percent, the April 2004s were at 6.31 percent (6.27), the November 2006s were at 6.48 percent (6.43), and the November 2011s were at 6.64 percent (6.58).
- NZPA
<i>Currency:</i> Dollar awaits US interest rate announcement
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