The New Zealand dollar firmed slightly yesterday in thin holiday-affected trade.
At 5 pm, the kiwi was at 42.52USc from 42.25 at Friday's close, while its Australian counterpart was at 51.54USc (51.50USc).
With Wellington closed there was no direct interbank market in the kiwi yesterday, which limited trade to a fraction of its normal flow.
US markets are closed overnight to mark Martin Luther King's birthday and dealers expect the kiwi to remain trapped in a narrow 42.40 to 42.65 range.
Bank of New Zealand foreign exchange manager Mike Symonds said Friday's successful $294 million bid by French company Danone Group for Frucor Beverages would have some currency implications.
However, there was some question about whether Danone had covered its currency requirements already, or if it needed to buy some kiwi still.
Tomorrow the Reserve Bank releases its decision on interest rates in the Official Cash Review.
The kiwi traded yesterday at $A82.52 ($A82.07 at Friday's close), 56.22 yen (56.12), 29.53 pence (29.41), and 0.4801 euro (0.4798).
The Australian dollar was buying $NZ1.2121.
- NZPA
<i>Currency:</i> Kiwi firms up
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