KEY POINTS:
The New Zealand dollar edged near a one-year high today, boosted by a softer greenback and strong yield demand.
The kiwi dollar closed at US70.90c compared with US70.62c yesterday.
Dealers said the kiwi was one of the stronger currencies overnight, with US markets closed for the funeral of former president Gerald Ford and the British and Japanese markets still on holiday.
The kiwi climbed as high as US70.97c on Tuesday night, its highest level since December 2005.
It found support against the yen, closing at 84.18 yen (84.02 yen yesterday), but eased against most other major trading partners, including the Australian dollar at A88.89c (A89.16c).
The TWI slipped to 69.57, against 69.61 yesterday.
Dealers say the market will likely remain thin until mid-January.
Tomorrow the markets will be looking to November trade data, which is generally forecast to come in at around a deficit $840 million.
Analysts will see it as an indicator as to whether the Reserve Bank will indeed raise interest rates at its January 25 meeting in order to curb inflation.
A Reuters poll sees the market predicting a 75 per cent chance of a 25 basis point rise.
Reuters currency rates:
5pm today 5pm Friday
NZ dlr/US dlr US70.90c US70.62c
NZ dlr/Aust dlr A88.89c A89.16c
NZ dlr/euro 0.5336 0.5361
NZ dlr/yen 84.18 84.02
NZ dlr/stg 35.90p 35.94p
NZ TWI 69.57 69.61
Australian dollar US79.77c US79.12c
Euro/US dollar 1.3288 1.3155
US dollar/yen 118.74 119.00
- NZPA