KEY POINTS:
The New Zealand dollar eased against the greenback overnight from the heights of the new 22-year post-float record set yesterday morning.
The exchange rate against the US dollar topped out at US79.43c at 9am yesterday, amidst a growing chorus of predictions a level above US80c is only a matter of time.
That sentiment had gained strength as stronger than expected inflation figures on Monday led a growing number of economists to predict the Reserve Bank will lift official interest rates next week.
Despite that, and continued greenback weakness, the kiwi eased against the US dollar during the day yesterday to be at US79.20c by 5pm, then continued that easing overnight to be at US79.10c by 8am today.
Against the Australian dollar the kiwi topped A91c for the first time in more than a week yesterday morning, fell away during the day to A90.69c by 5pm, then traded sideways during the night to be largely unchanged by 8am today.
Against the euro, yesterday morning's peak around 0.5765 was also the highest in more than a week and was followed by a gradual easing to 0.5747 by 5pm and 0.5739 by 8am.
It was a slightly different story against the yen, with the kiwi hitting its highest level in more than a week at 96.87 early today, up from 96.53 at 5pm yesterday. By 8am today it had eased to 96.76.
The trade weighted index was 75.77 at 8am today from 75.81 yesterday evening.
The US dollar edged up against the yen overnight after a government report showed foreign investors bought a record amount of US securities in May.
A slightly larger than expected advance in producer prices last month also provided mild support for the greenback, which helped to ease some concerns that the Federal Reserve will soon have to cut interest rates.
- NZPA