The New Zealand dollar rallied again today in line with gains in the aussie dollar and euro against a weaker greenback.
"Right now it's the US dollar direction which is giving the kiwi direction," BNZ currency strategist Sue Trinh said.
At 5pm in Wellington the kiwi was buying US64.85c from US64.40c the same time last night.
The kiwi's trading range was between US64.40c and US64.92c today.
Meanwhile the aussie was at US73.74c from US73.40c at 5pm yesterday.
The US Federal Open Market Committee (FOMC) is meeting overnight and will release an interest rate statement tomorrow morning about 8.15am NZT.
Ms Trinh said the overnight market was likely to be fairly quiet in the lead-up to the FOMC announcement.
She said US rates were not expected to change, but there was some speculation that the committee might have a subtle change of wording regarding its rates outlook.
She said the kiwi's overnight trading range against the greenback was likely to be US64.50c to US65c.
Reserve Bank governor Alan Bollard will release the results of a joint study into the pros and cons of intervention in the New Zealand market tomorrow morning before speaking to a parliamentary committee.
Ms Trinh said the governor was not expected to say an intervention was imminent, but rather reiterate statements made last week that intervention would be considered if the currency moved in an unjustifiable fashion.
The US dollar was buying 110.11 yen at 5pm (110.77 yen at 5pm yesterday), while the euro was at US$1.2270 (US$1.2224).
On the crosses the kiwi was buying A87.94c (A87.74c), 0.5285 euro (0.5269), 71.42 yen (71.34), 35.95 British pence (35.75), and 0.8264 Swiss francs (0.8251).
The trade-weighted index was at 65.38 (61.14), while the monetary conditions index was at plus 529 (508).
Ninety-day bank bill yields were at 5.53 per cent (5.50).
The February 2006 yields were at 5.31 per cent (5.28), July 2009 bonds were at 5.53 per cent (5.51), while April 2013s were at 5.70 per cent (5.67).
- NZPA
<I>Currency:</I> Kiwi rallies against greenback
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