KEY POINTS:
The New Zealand dollar traded in a narrow range today after falling sharply overnight.
At 5pm the kiwi dollar was at US68.22c, more than half a cent lower than its US68.77c close yesterday.
But it was a recovery from a two-month low of US67.96c on Thursday, as dealers offloaded carry trades after a negative US bank report on the kiwi dollar on Wednesday.
"The low was earlier this morning when it briefly dropped below US68c, but since then it has been holding around US68.20c through the day," Westpac Investment Bank currency strategist Michael Gordon said.
The New Zealand dollar also weakened against its Australian counterpart at A88.29c (A88.67c yesterday), and closed weaker than the yen at 82.39 yen (83.04).
The traded-weighted index slipped to 67.91 from 68.40.
The aussie dollar dipped slightly after the Australian trade deficit widened today, closing at US77.26c compared with US77.53c yesterday.
Mr Gordon expected the kiwi dollar to find resistance at US68.80c and support around US67.80c, as markets awaited US payroll figures out tonight.
Major currencies are also eyeing the G7 meeting of finance ministers next weekend. Conflicting statements about the weakness of the yen are creating volatility.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US68.22c US68.77c
NZ dlr/Aust dlr A88.29c A88.67c
NZ dlr/euro 0.5241 0.5278
NZ dlr/yen 82.39 83.04
NZ dlr/stg 34.69p 35.03p
NZ TWI 67.91 68.40
Australian dollar US77.26c US77.53c
Euro/US dollar 1.3020 1.3031
US dollar/yen 120.74 120.74
- NZPA