The New Zealand dollar made modest gains today trading in a tight range after putting in a solid performance on overseas markets last night.
"It's been a grind up today," ANZ head of foreign exchange John Body told NZPA.
Trading in a "reasonably tight" range of US58.25c-US58.42c the kiwi sustained gains made over the last week to close at US58.36c compared with US58.15c at 5pm yesterday.
"The kiwi looks pretty strong again now," Mr Body said.
"We've had that period of correction. We've really absorbed the Reserve Bank's easing of monetary policy and have moved on back to the underlying weakness in the US dollar and the fact that although it has narrowed, there still is an interest differential."
Mr Body expected to see the kiwi head back up to US59c "reasonably quickly".
Mr Body anticipated the kiwi would be well supported below US58.30c in offshore trading tonight, and it would have a chance to push up to US58.70c on the top side.
M eanwhile the aussie also strengthened against the greenback today. At 5pm in Wellington it was at US66.94c (US66.80c at 5pm yesterday).
Against the aussie at 5pm the kiwi was at A87.18c (A87.06c).
The euro was at $US1.1844 ($US1.1877), and the US dollar was buying 117.67 yen (117.66 yen).
On the crosses at 5pm, the kiwi was buying 68.68 yen (68.44 yen), 34.69 pence (34.77), 0.7608 Swiss francs (0.7558), and 0.4928 euro (0.4899).
The monetary conditions index was at plus 181 (164), the trade-weighted index was at 61.35 (61.15) and 90-day bank bill yields were at 5.23 per cent (5.19).
The February 2005 yields were at 4.73 per cent (4.68), the November 2006s were at 4.75 per cent (4.69), and the November 2011s were at 5.04 per cent (4.97).
- NZPA
<i>Currency:</i> Kiwi finding renewed strength
AdvertisementAdvertise with NZME.