5.40pm
Euro and Australian dollar strength took the wind out of the New Zealand dollar's sails today, helping the currency down from recent gains.
At 5pm, the kiwi was at US64.77c, having traded in a tight range between US64.66/84c (compared with US64.70c at 5pm last night). The Australian dollar was at US73.99c (US73.73c).
During the session, the kiwi failed to make headway against the aussie with its higher interest yields, or the euro which is doing well against US dollar weakness and a lower than expected US payrolls report on Friday.
Last night the euro pushed to US$1.2239, its highest since December 1998. It closed in Wellington at $1.2224 ($1.2158).
The greenback closed here at 107.33 yen (107.65).
However, all markets were awaiting an interest rate decision from the US Federal Reserve.
"The market's not looking for any change by the Fed tomorrow but it's going to be the statement which is going to be of great interest to the market," one dealer said.
"If we see a buoyant statement there's every chance the US dollar could rally back against all currencies and we could see a bit of retracement in the kiwi and...aussie."
Overnight, he predicted the kiwi would remain moribund.
"The kiwi's sort of stuck at this stage and we think there's enough offers around the US64.85c area to keep it capped tonight."
On the crosses, the kiwi was at A87.55c (A87.58c), 0.5300 euro (0.5322), 69.53 yen (69.67), 37.35 pence (37.43), and 0.8209 Swiss francs (0.8264).
The Australian dollar was buying $1.1424 ($1.1418).
The trade weighted index was at 65.17 (65.27), the monetary conditions index was at plus 489 (493), and 90-day bank bills were at 5.28 per cent (5.28).
On the debt market, April 2004 bonds were at 5.14 per cent (5.17), February 2006s were at 5.62 per cent (5.61), and November 2011s were flat at 6.00 per cent.
- NZPA
<I>Currency</I>: Kiwi gives up gains ahead of US rates decision
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