7.00pm
The New Zealand dollar gained more than 50 basis points to breach the key US69c mark in a session swirling with talk of a $1 billion Uridashi issue, brokers said today.
At 5pm, the kiwi was fetching US69.26c (from US68.73c at 5.30pm last night), with talk in the market surrounding a New Zealand dollar Uridashi issue, worth potentially $1 billion and driving demand.
The Australian dollar was at US77.56c (US77.19c).
BNZ currency strategist Sue Trinh said the kiwi had started the session on the front foot, and in demand from offshore buyers.
"It's picked up quite nicely against the crosses, most notably against the yen," Ms Trinh said.
"There's ongoing speculation (of an Uridashi), but we'd probably expect to see more details over the next week or so," she said.
Westpac NZ's chief dealer, Basil Payn, said there had been some "buying out of Tokyo but I can't say if that's Uridashi-related.
"The Aussie and euro are stronger, and rumours of this Uridashi has pushed the Kiwi nicely," he told DowJones Newswires.
Uridashis are bonds sold to Japanese retail investors but denominated in currencies other than yen.
Looking ahead this week, there is key United States payroll data out on Friday, while the Reserve Bank of Australia is reviewing its official cash rate (OCR) on Wednesday.
The Reserve Bank of New Zealand reviews its OCR next week.
Meanwhile today, the euro edged up to US$1.2517 (US$1.2447), and the greenback was buying 109.34 yen (109.49).
On the crosses at 5pm, the kiwi was buying A89.31c (A89.10c), 0.5534 euro (0.5524), 75.73 yen (75.29 yen), 36.99 British pence (36.98), and 0.8726 Swiss Francs (0.8708).
The trade-weighted index rose to 68.63 (68.30), while the monetary conditions index was at plus 781 (756).
Ninety-day bank bill yields were unchanged at 5.62 per cent, July 2009 bonds were at 5.68 per cent (5.73), and April 2013s were at 5.82 per cent (5.88).
- NZPA
<i>Currency:</i> Dollar breaches US69c mark on Uridashi talk
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