The New Zealand dollar rallied late in the day after a rash of early selling, but dealers warned lack of support could see it slip back over the weekend.
By 5pm the kiwi ended up at US46.54c, not too far from its close of US46.42c on Thursday. The aussie closed in Wellington at US54.03c, just down from last night's US54.09c.
During the day the kiwi bounced off a low of US46.07 to US46.61, but a local dealer said the uncertain offshore climate was still making southern currencies seem too risky, suppressing their growth.
"The stock market's not looking too good, US not looking too good, world growth, commodity currencies not feeling too well, dollar-yen shooting up and aussie's popped through the figure again but collapsed again at (US53).20c -- who knows?"
He picked the kiwi to trade between US46.30c and a high of US46.70c overnight. The pivotal point was the US46c level -- "if we go through there, it's not looking too good".
The kiwi has eased more than 3 US cents since late June.
During the session the euro bolted higher after data revealed growth in US manufacturing. Consequently the euro closed here at US98.70c, nearly a cent higher than yesterday's close. On the crosses at 5pm the kiwi turned in a mixed performance, buying A86.07c (A85.85c at Thursday's close), 55.37 yen (55.59), 29.78 pence (29.68), 0.6828 Swiss francs (0.6887) and 0.4714 euros (0.4746).
The aussie was buying $NZ1.1619 ($NZ1.1651).
On the money market, 90-day bills were at 5.91 per cent (5.93), the trade-weighted index was at 53.19 (53.22) and the monetary conditions index eased slightly to minus 464 (minus 459).
On the debt market, the April 2004 bonds were at 5.52 per cent (5.58), the November 2006 bonds were at 6.09 per cent (6.17), and the November 2011 bonds were at 6.34 per cent (6.43).
- NZPA
<i>Currency:</i> Kiwi bounces mildly as offshore gloom sets in
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