The New Zealand dollar traded in a tight range around 43USc yesterday, supported by continued overseas interest.
At 5 pm the kiwi was at 42.92USc, little changed from Tuesday's 42.90USc close, having traded as high as 43.04USc in the New York session.
Its Australian counterpart was at 52.05USc (51.95USc).
The Reserve Bank decision yesterday morning to leave rates unchanged had little impact on the kiwi.
With the Official Cash Rate at 4.75 per cent, the bank has preserved the second-highest bond yields in the developed world.
Investors tend to favour currencies of nations with higher interest rates because of the prospects of higher returns.
"Kiwi is seeing some benefit as that interest rate differential argument trickles into play," one local dealer said.
New Zealand's cash rate is 3 percentage points higher than the equivalent US rate and half a percentage point higher than Australia's.
The kiwi was at 82.46Ac (82.58Ac at Tuesday's close), 48.33 euros (48.50), 57.55 yen (57.39) and 29.98 pence (29.97).
- NZPA
<i>Currency:</i> Interest in kiwi
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