The New Zealand dollar weakened slightly today after more demand for the kiwi from Japan was met with ample supply.
The kiwi was buying US68.97c at 5pm in Wellington from US69.26c at the same time yesterday. The aussie was buying US77.27c from US77.56c yesterday.
Westpac currency strategist Johnathan Bayley said the kiwi had traded "overall sideways" today following yesterday's 1c rally on demand from Tokyo said to be the result of an upcoming "uridashi" issue.
Uridashis are bonds sold to Japanese retail investors but denominated in currencies other than yen.
The uridashi issue fuelling demand for the kiwi was rumoured to be worth about $1 billion, Mr Bayley said.
He said the market saw more demand for the kiwi out of Tokyo today, but unlike yesterday, this time it was met with some "good local supply to counter the demand".
"We've actually had a very flat day altogether," he said.
Elsewhere, the market would be watching the Reserve Bank of Australia's interest rate announcement tomorrow, and to a lesser extent the Bank of Canada's rate announcement overnight.
Also of key interest is Friday's US payroll data.
Meanwhile, the greenback was buying 109.07 yen at 5pm in Wellington (109.34 last night), and the euro was fetching US$1.2438 (US$1.2517) last night, and the greenback was buying 109.01 yen (109.34).
On the crosses, the kiwi was buying A89.25c (A89.31c), 0.5545 euros (0.5543), 75.23 yen (75.73 yen), 36.94 British pence (36.99), and 0.8753 Swiss Francs (0.8726).
The trade-weighted index fell to 68.47 (68.63), while the monetary conditions index was at plus 771 (781).
The 90-day bank bill yields were at 5.63 per cent (5.62).
The February 2006 yields were steady at 5.49 per cent, July 2009 bonds were at 5.69 per cent (5.68) and the April 2013s were at 5.83 per cent (5.82).
- NZPA
<i>Currency:</i> Kiwi moves sideways despite Japanese demand
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