The New Zealand was treading water today, ahead of a big week featuring a Reserve Bank of NZ interest rate review and inflation data.
By 5.45pm the kiwi was at US66.38c, down from US66.79c on Friday but little changed from this morning. The currency fell against the Australian dollar to A87.62c from Friday's A88.02c, but was also in line with its early level today.
The local market is now leaning towards an interest rate rise from New Zealand's central bank to 7.50 percent on Thursday.
But of wider importance is increasing hawkishness in the United States, where market watchers are expecting the Fed to keep rates steady on Thursday at 5.25 percent but issue a strong accompanying statement.
"While global investors remain obsessed with their search for high-yielding assets it is difficult to see the NZD/USD trading substantially below US65.00c unless markets become convinced the RBNZ will not need to hike rates again," the Bank of NZ said.
A RBNZ statement that hinted 7.50 percent would probably be the peak for the official cash rate, but maintained that future policy depended on economic data, was likely to push the kiwi above September's seven-month high of US67.25c, the BNZ said.
Third quarter inflation data is released on Wednesday, and monthly trade figures are out on Friday.
The US dollar steadied against the yen after getting a lift the previous session as traders braced for the Federal Reserve to reiterate concerns about inflationary pressures at an upcoming policy meeting.
Reuters currency rates:
5.45pm today 5pm Friday
NZ dlr/US dlr US66.38c US66.79c
NZ dlr/Aust dlr A87.62c A88.02c
NZ dlr/euro 0.5292 0.5286
NZ dlr/yen 79.26 79.01
NZ dlr/stg 35.45p 35.58p
NZ TWI 67.07 67.22
Australian dollar US75.78c US75.88
Euro/US dollar 1.2545 1.2637
US dollar/yen 119.40 118.33
- NZPA
<i>Currency:</i> Kiwi pinned ahead of RBNZ rate call on Thursday
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