The New Zealand dollar ended the local session near the middle of its range today.
The kiwi traded between US58.92/30c, and was likely to continue straddling the US58c level overnight albeit with a glance towards US58.50c, one local dealer said.
"It's been relatively subdued still, another period of consolidation and a bit of profit-taking after recent gains."
A fall in the euro against the greenback overnight meant the kiwi, which has benefited from recent gains in the euro, opened lower today.
"Today we've really just been range-trading, a bit of two-way interest has been holding it relatively steady," he said.
The kiwi's softening also came on the back of Finance Minister Michael Cullen's comments in Sydney yesterday which included hints that he would prefer the Reserve Bank to lower interest rates again.
The kiwi has eased from its fresh five-year highs yesterday of US58.80c.
At 5pm the New Zealand dollar was buying US58.08c, well down from US58.60c at 5pm yesterday, while the aussie was at US65.51c (US65.92c).
In Tokyo, the US dollar touched a two-week high against the yen after optimistic comments from Federal Reserve Chairman Alan Greenspan lowered expectations for further US interest rate cuts any time soon.
Traders said some players had been building US dollar short positions - picking the greenback would fall - on speculation that Dr Greenspan, during his testimony in Congress yesterday, would signal a possible cut in the Federal Funds rate.
"Traders are simple-minded. There really wasn't anything new in his comments but since he did not hint at a rate cut, players are short-covering," said a trader at a major Japanese bank.
The euro eased to $US1.1649 at 5pm in Wellington from $US1.1716 yesterday, while the US dollar was buying 117.58 yen (116.66 yen).
On the crosses at 5pm, the kiwi was buying A88.67c (A88.90c at 5pm yesterday), 68.29 yen (68.36 yen), 35.54 pence (35.72), 0.7540 Swiss francs (0.7563), and 0.4986 euro (0.5004).
The monetary conditions index was at plus 214 (238), the trade-weighted index was at 61.62 (61.93) and 90-day bank bill yields were at 5.33 per cent (5.32).
In the bond market, the February 2005 yields were at 4.95 per cent (4.92), the November 2006s were at 5.14 per cent (5.08), and the November 2011s were at 5.46 per cent (5.41).
- NZPA
<i>Currency:</i> Kiwi eases as US dollar regains some strength
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