The New Zealand dollar closed near the top of its range yesterday after a volatile session.
ANZ Investment Bank chief foreign exchange dealer Murray Hindley said the kiwi had been "whippy" today, with moderate interest from various quarters.
By 5pm the kiwi was at US54.68c, down slightly on Thursday night's close of US54.75c, while the aussie was little changed at US58.80c (US58.83c at Thursday 's close).
The New Zealand dollar slipped on the trans-Tasman cross to A92.84c (A93.09c).
During the day the kiwi fluctuated between US54.40c and US54.72c. Mr Hindley said the kiwi was likely to continue seeing support at US54.40 during the offshore session tonight, and be capped above US54.70c.
Across the Tasman, Australia released details of a record A$3 billion ($3.4 billion) trade deficit as farm exports shrivelled after nearly a year of no rain.
The drag on Australia's economic growth from the trade trends would help quash any impulse at the Reserve Bank to alter interest rates after it meets on Tuesday, analysts said. The cash rate has stood at 4.75 per cent since June, compared with New Zealand's 5.75 per cent.
The United States dollar held fairly steady versus the euro in Asia but mounting war fears and the latest slide in US share prices are casting shadows over the greenback.
Against the yen, the greenback improved to 119.05 yen (118.64 yen in Wellington Thursday night) and the euro eased to US$1.0816 against the dollar (US$1.0820).
New Zealand's trade-weighted index fell to 60.06 (60.22), 90-day bank bills were at 5.83 per cent (5.85), and the monetary conditions index was at plus 138 (151).
The kiwi slipped against other major currencies, and at 5pm was buying 0.5045 euro (0.5060), 64.94 yen (64.97 yen), 33.00 pence (33.23), and 0.7404 Swiss francs (0.7438).
The Australian dollar was buying $1.0773 ($1.0745).
On the debt market, the April 2004 government bonds were at 5.49 per cent (5.50), the November 2006s were at 5.61 per cent (5.63), the November 2011s were at 5.96 per cent (6.03), and the April 2013s were at 5.99 per cent (6.07).
- NZPA
<i>Currency:</i> Kiwi closes near top of range after whippy session
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