The New Zealand dollar had a fairly dull start to the week, ending trade yesterday on 42.35USc.
"It sounds like an interesting day but it wasn't," one dealer said. "It stayed at 42.60/70c most of the day. Basically a few guys started to get a little bit long, and as it started drifting off one or two locals started selling," he said.
"The Australian dollar started coming off a little bit as well, which hinted which way the kiwi was going to go on the day. I think the kiwi will hold up but it all depends on what happens overnight in the US anyway," he said.
Yesterday morning the New Zealand dollar gave up Saturday gains which drove it to 43USc and, like its Australian and European Union travelling companions, slipped on news regarding the US presidential elections.
A local currency dealer said a New York fund sold aussie for kiwi on Saturday, shunting it to 43USc. It then drifted a fifth of a US cent down before joining the euro and company in a rally on the back of positive news for Al Gore in his post-election fight for the White House.
However, since then the US Supreme Court has halted the recount of Florida votes and the euro dragged its camp followers down with it.
Also, changes to the Morgan Stanley Capital Index for stocks have prompted concerns that European weightings may be reduced, a negative for the euro.
Looking ahead, the big number this week comes from the third-quarter current account on Friday, and Australian growth figures tomorrow will also be significant.
- NZPA
<i>Currency:</i> Florida twists keep lid on kiwi
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