KEY POINTS:
The New Zealand dollar today held gains made yesterday on the release of March quarter retail sales data.
The kiwi jumped half a cent yesterday morning to US73.80c on news that retail sales rose 3.8 per cent in the March quarter, more than double the 1.8 per cent economists expected.
Market commentators said another rate hike was a prospect, following the sales figures.
The NZ dollar briefly popped above US74c today but ended on US73.75c, virtually unchanged from yesterday.
ANZ Bank said the kiwi was encountering familiar resistance at US74c.
It continued to rise against the Australian dollar, ending on A88.60c from A88.47c yesterday.
The trade weighted index ended the session on 71.57 from 71.50 yesterday.
The NZ dollar was supported by demand related to Eurokiwi and Uridashi issuance. Last night, the World Bank announced a NZ$633m 2-year Uridashi (Japanese retail bonds issued in New Zealand dollars). Issuance this month already totals $1.276 billion, well above the $1.157 billion maturing this month.
This suggests any further issuance will provide further support for the NZ dollar, BNZ currency strategist Danica Hampton said.
In major currency trading, the US dollar edged lower against the euro on Monday, ahead of US inflation data and a series of speeches from Federal Reserve officials that could yield clues on whether a cut in US interest rates is likely this year.
The euro crept higher across the board, tracking a rise in euro zone bond yields, which hit multi-year highs on a view that the European Central Bank will raise rates at least once more this year.
But the dollar posted modest gains against the yen, and was little changed against an index of six major currencies.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US73.75c US73.73c
NZ dlr/Aust dlr A88.60c A88.47c
NZ dlr/euro 0.5445 0.5442
NZ dlr/yen 88.78 88.63
NZ dlr/stg 37.25p 37.15p
NZ TWI 71.57 71.50
Australian dollar US83.24c US83.32c
Euro/US dollar 1.3546 1.3548
US dollar/yen 120.38 120.20
- NZPA