KEY POINTS:
The New Zealand dollar ended little changed today after a brief flirtation above US74c.
It rose to US74.06c early this morning but ended unchanged from yesterday at US73.75c. The market was quiet.
New housing data showing no let up in house price inflation which increased the risk of another rate risk, economists said. That was likely to put further upward pressure on the kiwi.
ANZ economists said the Reserve Bank could not afford to let momentum within the economy continue given the prevalence of inflation pressures.
"The Reserve Bank needs to make certain of reining the current momentum in the economy this time around.
"This means the bias will be to do more than is necessary on the rates front to engineer this, and sooner rather than later. We believe the risk profile for a rate hike in June is increasing."
Against the Australian dollar, the kiwi ended on A88.62c, also virtually unchanged from yesterday.
The trade weighted index finished on 71.49 from 71.57 at 5pm yesterday.
The US dollar steadied against the euro after falling on a report suggesting US inflation was well-contained, which backed the view that the Federal Reserve could cut interest rates this year.
The euro held its gains though, supported by expectations that euro-zone interest rates may keep rising.
The single currency also stayed near a record high against the yen, which took a fresh blow from soft machinery orders data that strengthened expectations that the Bank of Japan will only be able to raise interest rates gradually this year.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US73.75c US73.75c
NZ dlr/Aust dlr A88.62c A88.60c
NZ dlr/euro 0.5426 0.5445
NZ dlr/yen 88.67 88.78
NZ dlr/stg 37.17p 37.25p
NZ TWI 71.49 71.57
Australian dollar US83.23c US83.24c
Euro/US dollar 1.3593 1.3546
US dollar/yen 120.26 120.38
- NZPA