The NZ dollar closed at 40.42USc yesterday after rising slightly during the day off its opening price of 40.19c.
The currency found comfort above the 40c mark after credit rating agency Moody's reaffirmed the country's Aa2 foreign currency rating on Tuesday.
Analysts said the New Zealand currency market was taking a back seat with most attention focused on the Middle East crisis, which continues to drive world bond yields lower as nervous money seeks safe havens.
Derek Rankin, a director at Greenwich Financial Services, said investors were waiting to see the results of overseas events, including the US presidential elections and the current Montreal G-20 meeting. "A lot of the markets are waiting to see what will come out of the meeting.
"There's actually a real lack of major investment inflow into New Zealand, and Australia for that matter, and in fact it's moving out ... and there's money flooding into US dollars.
"We're not attracting any investment capital into New Zealand at all, and the actual dealing rooms are not seeing large capital flows and there's not a lot to trade off," Mr Rankin said.
"So they either tend to trade off the actual trade flows that are coming through or they trade off what is happening with other currencies."
- NZPA
<i>Currency:</i> Kiwi gains but focus overseas
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