The New Zealand dollar marked time yesterday, after beginning a shortened post-holiday week on three-month highs.
At 5pm the kiwi was lying virtually flat at its opening levels, at US48.92c, compared to US48.53c at Friday's close. Its Australian counterpart was at US55.87c (US55.52c).
Dealers said the kiwi currency had risen on the coat-tails of a stronger aussie dollar and a softer greenback last night.
Yesterday it pushed up to US49.05c during the session, taking out a few stop losses before edging down below US49c again.
"The momentum that we've had coming here has been somewhat haphazard ... so it wouldn't surprise me if we had a bit of a pullback," a local dealer said. But he believed the trend was still positive.
So did BNZ currency strategist Stu Ritson, who expected the kiwi to target US49c-US49.50c -- highs not seen since mid-July -- this week.
"Dips have been almost non-existent since the October 15 low (US47.57c), illustrating the ongoing demand for the New Zealand dollar," he said in a morning commentary yesterday.
Mr Ritson said the move higher appeared to be yield-related, and the improved risk environment suggested this would continue for the time-being.
Dealers forecast an overnight trading range for the kiwi of US48.75c to US49.10c.
The kiwi had a mixed day against its major trading partners yesterday, buying A87.57c (A87.58c at Friday's close), 0.4976 euro (0.4967), 60.51 yen (60.21), 0.3140 pence (0.3126), and 0.7286 Swiss francs (0.7290).
The Australian dollar was at $1.1422 ($1.1418) at 5pm.
The 90-day bill yield was at 5.92 per cent (5.91), the New Zealand dollar trade-weighted index at 56.10 (55.88), and the monetary conditions index tightened to minus 197 (minus 218).
The April 2004 bonds were at 5.68 per cent (5.72), the November 2006s were at 6.04 per cent (6.11), and the November 2011s were at 6.37 per cent (6.42).
- NZPA
<i>Currency:</i> Kiwi marks time, hangs on to three-month highs
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