The New Zealand dollar closed steady with its opening yesterday after it slipped overnight Monday.
Dealers said there was some profit taking following its move up and ahead of today's Reserve Bank quarterly monetary policy statement.
The kiwi closed at US49.73c against Monday's US49.87c close, and well down on Friday's highs around US50.20c.
Dealers said if the Reserve Bank leaves things on hold as expected and does not signal an easing bias, then the kiwi should have another stab at US50c.
Economists and others are keenly awaiting the debut Monetary Policy Statement (MPS) of new Governor Alan Bollard, who has been given slightly more flexibility in reaching a 1-3 per cent inflation target.
The MPS will have to weigh a domestic economy moving at a healthy clip against the uncertain global outlook and most economists believe the best move could be to leave interest rates as they are.
The Australian dollar was equally static, closing little changed from its opening at US56.19c compared with US56.34c Monday.
On the crosses at 5pm the kiwi was buying A88.51c against Monday's close of A88.53c, 0.4928 euro (0.4940), 60.17 yen (60.31), 31.42 pence (31.59), and 0.7235 Swiss francs (0.7245).
The Australian dollar was buying $NZ1.1313 ($NZ1.1297)
The 90-day bank bill yield was at 5.90 per cent (5.90), the New Zealand dollar trade-weighted index was at 56.31 (56.48), and the monetary conditions index was at minus 180 (minus 164).
On the bond market the April 2004s were at 5.63 per cent (5.61), the November 2006s were at 5.92 per cent (5.93), the November 2011s were at 6.20 per cent (6.21), and the April 2013s were at 6.24 per cent (6.25).
- NZPA
<i>Currency:</i> Kiwi closes steady after lower opening
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