The New Zealand dollar quietly crept up to close above the US47c mark, holding its ground despite attention being elsewhere.
At 5pm the kiwi was at US47.07c, an improvement on Tuesday's close of US46.85c, hitching a ride with a stronger aussie dollar which closed here at US54.74c (US54.30c Tuesday night).
Dealers said stronger than expected retail figures boosted the Australian dollar during the day.
The National Bank business outlook survey released today showed business confidence has fallen for the fourth month in a row, with a net 22 per cent of respondents expecting conditions to worsen.
But Graeme Blackwood of Deutsche Bank said the survey had little impact on the New Zealand dollar because most traders were focusing on the US and its equities markets.
Bank of New Zealand currency strategist Stuart Ritson said the survey result increased the likelihood of an interest rate hike on August 14, the opposite of the National Bank's own conclusions. He expected trade in the kiwi to remain whippy in coming sessions.
Overnight the kiwi was expected to trade between US46.80/47.20c.
On the crosses at 5pm the kiwi strengthened against most other currencies but lost ground on the kiwi-aussie cross.
It traded at A85.98c (A86.30c at Tuesday's close), 56.41 yen (56.28), 29.95 pence (29.96), 0.6972 Swiss francs (0.6966) and 0.4785 euro (0.4778).
The aussie was buying $NZ1.1631 ($NZ1.1589).
On the money market, 90-day bills were at 5.95 per cent (5.96), the trade-weighted index was at 53.78 (53.69) and the monetary conditions index tightened to minus 405 (minus 413).
On the debt market, the April 2004 bonds were at 5.64 per cent (5.61), the November 2006 bonds were steady at 6.26 per cent, and the November 2011 bonds were at 6.52 per cent (6.49).
- NZPA
<i>Currency:</i> Kiwi hitches ride with Aussie but all eyes on US
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