KEY POINTS:
The New Zealand dollar today held out above 10-week lows, after losing 2c on Friday due to ongoing nervousness about overseas credit markets.
The New Zealand dollar closed at US74.35c, after hitting a 10-week low of US74.01c in New York on Friday night, its lowest point since June. It closed at US74.45c on Friday.
"Volumes have been a lot lighter than the previous week. I think all you can really say is it's been a consolidation day ," ANZ Investment Bank chief dealer Murray Hindley said.
Markets were reassured by a US$300 billion injection of funds by central banks in Europe, Asia and the US on Thursday and Friday.
But jitters remained about currencies favoured by the riskier carry trades.
The kiwi weakened against other major trading partners, including the euro at 0.5427 (0.5450 euro on Friday) and the yen at 87.93 yen (87.88 yen).
It also weakened against its Australian counterpart, as the Australian central bank reinforced the view that domestic interest rates have higher to go.
The Aussie closed at A87.77c against the kiwi, compared with A88.27c on Friday , and jumped to US84.75c from US84.36c on Friday.
The trade-weighted index fell to 71.33 (71.57 ).
Dealers said retail data out tomorrow and US retail figures out tonight would help provide more direction for the market.
Also today data from QV showed the pace of NZ house price growth rose 12.7 per cent in the year to June, but the market appeared to be slowing.
Food prices rose 1.2 per cent in July on previous month.
Meanwhile, the yen steadied against other major currencies on Monday as investors looked to see if a money market squeeze from the spreading US subprime mortgage distress would worsen.
Reuters currency rates:
5pm today 5pm Friday
NZ dlr/US dlr US74.35c US74.45c
NZ dlr/Aust dlr A87.77c A88.27c
NZ dlr/euro 0.5427 0.5450
NZ dlr/yen 87.93 87.88
NZ dlr/stg 36.74p 36.84p
NZ TWI 71.33 71.57
Australian dollar US84.75c US84.36c
Euro/US dollar 1.3700 1.3662
US dollar/yen 118.27 118.02
- NZPA