The New Zealand dollar eased today from above US60c yesterday as the euro, to which the kiwi has become attached, weakened against the US dollar.
Bancorp Treasury Services director Earl White said the kiwi was likely to be constrained between US59.50c and US60c.
"We had some reasonable importer selling come into the market. That, combined with a little bit of profit taking, saw (the kiwi) settle a little lower on the day," Mr White said.
Against the US dollar at 5pm the kiwi was buying US59.73c, below its US59.89c close yesterday. The aussie was at US67.62c (US68.31c).
In Tokyo today the yen took little notice of the Nikkei average's rise above the psychologically important 10,000 mark as investors pondered whether the stock rally would last.
Japanese traders said the euro was facing pressure from domestic investors who were selling euro bonds and repatriating funds to cover losses from government bonds.
In Wellington tonight the euro eased to $US1.1328 from $US1.1453 yesterday, while the US dollar was at 118.13 yen (118.07).
By 5pm on the crosses the kiwi was buying A88.34c (A87.62c at yesterday's close), 70.53 yen (70.67), 36.21 pence (35.94), 0.8197 Swiss francs (0.8095), and 0.5273 euro (0.5226).
The monetary conditions index was at plus 342 (328), the trade-weighted index jumped to 63.43 (63.25) and 90-day bank bill yields were at 5.13 per cent (5.16).
The February 2005 yields were at 4.86 per cent (4.84), the November 2006s were at 5.02 per cent (4.99), and the November 2011s were at 5.41 per cent (5.36).
- NZPA
<i>Currency:</i> Kiwi eases back below US60c, strength expected offshore
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