The New Zealand dollar will firm to 48USc in three months and 53USc in 12 months, US international finance house Goldman Sachs forecast yesterday.
Meanwhile, the kiwi capped off a quiet day by drifting from its opening price to close at 39.96USc.
An ANZ currency dealer said the New Zealand dollar traded within a tight range of 39.80USc and 40USc.
"It was a very quiet day, but there was an underlying buying interest from a Wellington bank," he said.
"The New Zealand dollar does seem fairly well-bid at the moment. It's in reasonable demand. It probably is Australian-related buying so it is offshore."
Today is likely to provide a quiet end to the week, although markets will be waiting for the Commerce Commission's decision whether to allow Royal Dutch Shell buy Fletcher Challenge Energy.
Long-term, approval of Shell's application would have a small positive effect on the kiwi as sentiment improved in the face of a more "laissez-faire" approach by the commission, the BNZ bank said.
The aussie traded at 52.12USc late yesterday, having eroded Wednesday's gains after rumours of significant buying by an Australian Government institution.
The Reserve Bank of Australia bought a net $A100 million ($132.3 million) in its foreign exchange market transactions in October.
- NZPA
<i>Currency:</i> Kiwi could be 53 USc in a year
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