The New Zealand dollar spent today languishing below the level of its recent string of 6-1/2 year highs brought on by a weaker United States dollar, a broker said.
At 5pm, the New Zealand dollar was fetching US68.15c (from US68.41c at the same time yesterday), after trading at between US68.08c and US68.55c today.
Last night the New Zealand dollar hit US68.71c, its highest level since June 1997, trumping a series of others highs since January 1.
The Australian dollar was at US77.67c (US77.83c).
BNZ currency strategist Sue Trinh said the New Zealand dollar's move to US68.55c came about 1pm after a surge in demand for the Australian dollar, before settling back to its closing level.
"We think the risk is to the downside for the next bigger move (in the kiwi)," she told NZPA today.
However, the "rate of appreciation (against the US dollar) looks suspicious given the lack of corrective pullback," she said.
A corrective bounce in the US dollar was possible in coming sessions, and could see the New Zealand dollar dip about 6 per cent, Ms Trinh said.
Her comments come after the US dollar rose more than a cent against the euro yesterday, recovering from Monday's record low after US Federal Reserve Chairman Alan Greenspan restated there was no sign of stress in funding the massive US current account deficit.
The euro, meanwhile, was still digesting a warning shot from European Central Bank President Jean-Claude Trichet which helped take the steam out of its recent rally.
At market's close, the euro was at $1.2737c (US$1.2761), having tested the US$1.29 mark on Monday. The US dollar was buying 106.24 yen (106.53).
On the crosses the New Zealand dollar was buying A87.75c (A87.89c), 0.5351 euro (0.5360), 72.40 yen (72.86), 36.93 British pence (36.99), and 0.8343 Swiss francs (0.8381).
On a trade weighted basis, the kiwi was at 66.96 (67.18).
The monetary conditions index was at plus 625 (642), and 90-day bank bills were unchanged at 5.30 per cent.
On the debt market, February 2006 bond yields were at 5.40 per cent (5.45), July 2009 bonds were at 5.67 per cent (5.73), and April 2013 bonds were at 5.83 per cent (5.90).
- NZPA
<i>Currency:</i> Kiwi just below level of recent highs
AdvertisementAdvertise with NZME.