The New Zealand dollar held its own as the currency went into consolidation mode in steady local trading yesterday.
At 5pm the kiwi traded at US48.60c, 20 points higher than its opening and stronger than yesterday's close (US48.47c). The Australian dollar also improved on early trading to US56.02c (US56.09c).
"It's hung in pretty well," Deutsche Bank's Phil Lindberg said of the kiwi dollar. "The aussie's picked up from its lows overnight and closing on their highs, I guess in part with the euro being a bit stronger on the day."
The kiwi was also "pretty bid" against the aussie, holding onto gains made overnight.
Offshore it was expected to trade between US48.35c/65c tonight.
WestpacTrust dealers said there was a risk the kiwi could slide further this week, as profit-taking for the Australasian currencies continued to outweigh weakness in the greenback.
But HSBC said the kiwi uptrend was still intact, although the rate of appreciation would be moderate.
Offshore the US dollar failed to make gains against the euro and yen on Tuesday despite a hefty rally on Wall St, underlining deep-rooted concerns about US corporate health.
On the 5pm crosses, the kiwi improved against all its major trading partners, buying A86.76c (A86.32c at yesterday's close), 60.50 yen (60.22), 32.84 pence (32.83), 0.7575 Swiss francs (0.7569) and 0.5134 euros (0.5126).
Against the kiwi the aussie was buying $NZ1.1526 ($NZ1.1571).
On the money market 90-day bills were at 6.02 per cent (6.01), the trade-weighted index was 56.39 (56.26) and the monetary conditions index tightened to minus 161 (minus 174).
The April 2004 bonds were at 6.04 per cent (6.00), the November 2006 bonds were at 6.47 per cent (6.35), and the November 2011 bonds were at 6.64 per cent (6.42).
- NZPA
<i>Currency:</i> Kiwi holds on against profit-taking
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