The kiwi ended today much where it closed yesterday after it had a topsy-turvy night, mainly due to the gyrations of the US dollar.
Rapid swings by the United States currency in response to US inflation data and Fed Chairman Ben Bernanke's commentary on the inflation outlook, saw the kiwi dive, then race back up against the greenback overnight.
By 5pm today it was buying US62.28c compared to US62.24c at 5pm yesterday, having been as low as US61.70c in the early hours of this morning.
Dr Bernanke said inflation would likely ease in coming quarters, cooling expectations that the central bank would bump up interest rates again in August.
The US currency had surged to three-month highs against the yen, euro and Swiss franc on a higher-than-expected rise in US consumer prices, but it spiked down after Dr Bernanke's comments before the Senate Banking Committee.
The US dollar had been buoyed leading up to the inflation data and the Fed chief's testimony by expectations the central bank would boost rates for an 18th straight time to 5.5 per cent at next month's policy meeting.
"Bernanke's comments were a little different from what the market had been expecting," said Nobuo Ibaraki, forex manager at Nomura Trust and Banking. "But a clear message about the Fed's future action hasn't been sent yet."
The kiwi weakened on other crosses. It ended on A83.09c from A83.49c, 0.4940 euro from 0.4980 and 72.70 yen from 73.01. The TWI ended on 62.28 from 63.05.
The following are Reuters currency rates:
5pm today 5pm Wednesday
NZ dlr/US dlr US62.28c US62.24c
NZ dlr/Aust dlr A83.09c A83.49c
NZ dlr/euro 0.4940 0.4980
NZ dlr/yen 72.70 73.01
NZ dlr/stg 33.76p 34.07p
NZ TWI 62.80 63.05
Australian dollar US75.00c US74.55c
Euro/US dollar US1.2606 US1.2501
US dollar/yen 116.72 117.29
- NZPA
<i>Currency:</i> Kiwi ends little changed after choppy trading
AdvertisementAdvertise with NZME.