The New Zealand dollar held its ground today, on the back of a weaker US dollar.
The kiwi was buying US65.39c at 5pm today, from US65.38 the same time last night
An Auckland based currency dealer said the kiwi traded in a tight range today, buying between US65.01c and US65.44c. He expected an overnight range of between US64.90 and US65.50c.
The dealer said the kiwi rallied aggressively early this morning, related to a $100 million euro/kiwi bond issuance overnight, but drifted off in later trading.
Meanwhile, the aussie was at US74.47c from US74.30c at 5pm yesterday.
Generally benign US inflation numbers out overnight undermined the greenback since the data reinforced the view that US interest rates look set to remain low for a considerable period, diminishing the appeal of US dollar-based assets.
US consumer prices rose 0.3 per cent in February, slower than the previous month's 0.5 per cent rise, but matching Wall Street expectations.
The US dollar also fell against the yen amid growing speculation that Japan might stop yen-selling intervention.
The US dollar was buying 107.24 yen at 5pm, down from 108.67 yen at 5pm yesterday.
The euro was at US$1.2270 (US$1.2286).
On the crosses the kiwi was buying A87.80c (A88c), 0.5328 euro (0.5325), 70.12 yen (71.04), 35.81 British pence (35.97), and 0.8323 Swiss francs (0.8347).
The trade-weighted index was at 65.46 (65.64), while the monetary conditions index was at plus 536 (548).
Ninety-day bank bill yields were at 5.52 per cent (5.51).
The February 2006 yields were at 5.31 per cent (5.28), July 2009 bonds were at 5.54 per cent (5.49), while April 2013s were at 5.51 per cent (5.65).
- NZPA
<i>Currency:</i> Dollar steady against weakening Greenback
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