KEY POINTS:
The New Zealand dollar ended a choppy trading session weaker with the focus on Australia where the central bank hiked interest rates as expected.
Earlier, the kiwi was buffeted strongly as the Federal Reserve left the key federal funds rate unchanged at 5.25 percent as expected. It was the Fed's commentary that inflation remained its primary concern, that caused the see-saw trading and the greenback to rally.
The kiwi closed on US76.12c, having traded as high as US76.45c and as low as US75.45c. Yesterday, it closed on US76.39c.
The Australian dollar softened after the Reserve Bank of Australia lifted official interest rates to 6.5 percent from 6.25 percent, again matching expectations.
Economists had anticipated the move following an unexpected spike in inflation during the June quarter, and well before the RBA had previously predicted.
The aussie closed on US85.55c compared with US85.77c at the same time yesterday while the kiwi cross rate eased to A88.81c from A89.08c.
A Wellington dealer said there was "no rhyme or reason" to the kiwi's trading pattern this week.
He said there had been further unwinding of Japanese carry trade positions against both aussie and the kiwi from Asian investors.
ANZ bank said warning bells may potentially be warming up again, as the kiwi looked vulnerable to another move lower.
However, a rebound in the kiwi would not be unexpected and even another tilt above US80c, the Wellington dealer added.
The US dollar rose against the yen and held above a four-month low after the Fed's comments that inflation remained its primary concern, lessening expectations it could cut interest rates.
Rates:
4.45pm today 4.45pm yesterday
NZ dlr/US dlr US76.12c US76.39c
NZ dlr/Aust dlr A88.81c A89.08c
NZ dlr/euro 0.5528 0.5532
NZ dlr/yen 90.37 90.67
NZ dlr/stg 37.59p 37.57p
NZ TWI 72.83 73.04
Australian dollar US85.55c US85.77c
Euro/US dollar 1.3752 1.3809
US dollar/yen 118.87 118.68
- NZPA