KEY POINTS:
The New Zealand dollar rose above US67c overnight in response to a weakening US dollar and traded a narrow band during the day session.
It failed to blink on the resignation of opposition leader Don Brash. Dealers said there was few implications for the kiwi no matter who is selected to replace him.
Trading over the next couple of days is expected to be particularly quiet due to the US Thanksgiving holiday and a Labour Day holiday in Japan.
New Zealand trade figures tomorrow could give direction, particularly if they are worse than anticipated.
A Wellington dealer said he expected the kiwi to trade between US66.80c and USS67.20c with the top side the vulnerable one.
Against the aussie dollar, the kiwi closed on A86.72c from A86.82c yesterday while the trade- weighted index ended on 66.65 from 66.77.
The US dollar was mired near a 5-1/2-month low against the euro and two-month lows against the yen, with trading expected to be subdued in Asia due to the upcoming holidays.
The US currency took a beating the previous day as investors rushed to cut back on risky positions in their portfolios before the holidays, sparking a broad-based sell-off that was exaggerated by relatively thin conditions.
The dollar tumbled more than 1 percent against both the yen and Swiss franc, the lowest yielding of major currencies that many investors have sold as a source of funds to buy higher-yielding currencies in the carry trade.
Rates:
5pm today 5pm Wednesday
NZ dlr/US dlr US67.13c US66.97c
NZ dlr/Aust dlr A86.72c A86.82c
NZ dlr/euro 0.5192 0.5212
NZ dlr/yen 78.36 78.82
NZ dlr/stg 35.07p 35.21p
NZ TWI 66.65 66.77
Australian dollar US77.43 US77.18c
Euro/US dollar 1.2930 1.2853
US dollar/yen 116.69 117.67
- NZPA