5.49PM
The kiwi pushed up out of its recent tight trading range against the greenback, but weakened against the Australian dollar today.
The kiwi spiked up to US66.42c at 6.15am when the US Federal Reserve's Open Market Committee (FOMC) lifted its key rate by 25 basis points to 1.75 per cent.
The kiwi started today's local session at 8.30am at US66.37c and traded in a range of US66.37c to US66.51c throughout the day.
At 5pm today the kiwi was at US66.47c from US66.07c at 5pm yesterday.
Today's rate hike was widely expected by financial markets and was the third rate increase since the benchmark rate hit a 46-year low of 1.00 per cent in June. The FOMC is due to meet twice more before the end of the year -- in November and December.
Meanwhile the Australian dollar also firmed against the greenback, closing today at US70.53c (US69.98c). The kiwi weakened against the aussie, closing at A94.25c against A94.40c at 5pm yesterday.
Westpac currency dealer Basil Payn said there had been quite a bit of interest out of Australia to buy aussie and sell kiwi. "Maybe based on the fact that commodity prices have had a big tick up -- some of the metals ...and that's seen as a little bit more buoyant for Australia rather than New Zealand," Mr Payn said.
At 5pm today the euro was at US$1.2320 (US$1.2175), and the US dollar was buying 109.79 yen (110.13).
The kiwi will gain further direction with the release of New Zealand's second quarter gross domestic product figures on Friday.
The New Zealand dollar trade-weighted index (TWI) was at 67.47 (67.41), while the monetary conditions index was at plus 805 (799).
On its other crosses, the kiwi 0.5395 euros (0.5426), 36.99 British pence (37.01), 72.98 yen (72.76), and 0.8343 Swiss francs (0.8408).
In the money market, 90-day bank bill yields were at 6.70 per cent (6.69 per cent). On the bond market, February 2006s were at 6.35 per cent (6.32), July 2009s were at 6.23 per cent (6.22), and April 2013s were unchanged at 6.19 per cent.
- NZPA
<i>Currency:</i> Kiwi breaks out of range on back of US rate hike
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