The New Zealand dollar held firmly above the key US65c mark in trading today as its United States counterpart again showed signs of weakness.
At 5pm, the kiwi was buying US65.07c (from US64.82c at the same time last night), having traded in the US65.00c and US65.18 band today.
Deutsche Bank head of global markets Sean Brown said the kiwi had managed to hold on to its overnight gains today.
The greenback briefly rallied on Monday after the US confirmed it had nabbed former Iraqi dictator Saddam Hussein, causing the kiwi to dip but firm towards the end of the domestic session.
"Yesterday it would have been fair to say that US65c was important resistance on the topside but it broke through that overnight," Mr Brown told NZPA today.
"It hasn't done a lot since it got through there... but it looks pretty good.
"The trends are still in place and you expect the kiwi-US dollar to keep performing, but on trade-weighted index (TWI) terms it's not really doing that."
The TWI was hovering in the 65.00 to 65.50 range, he said.
"In other words, as the US dollar weakens we are just maintaining our gains rather than outperforming it."
Meanwhile, the Australian dollar was at US74.27c (US74.37c), the euro was at US$1.2331 (US1.2319c), and the greenback was fetching 107.52 yen (107.74).
On the crosses, the kiwi was buying A87.62c (A87.17c), 0.5279 euro (0.5263), 69.96 yen (69.86), 37.11 pence (37.11), and 0.8193 Swiss francs (0.8180).
The trade weighted index was at 65.30 (65.10), the monetary conditions index was at plus 504 (488), and 90-day bank bills were at 5.34 per cent (5.33).
On the debt market, April 2004 bonds were at 5.15 per cent (5.19), February 2006s were at 5.58 per cent (5.64), and November 2011s were at 5.90 per cent (5.99).
- NZPA
<i>Currency:</i> Dollar breaches US65c mark and holds its ground
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