The New Zealand dollar was rangebound yesterday as looming Asian holidays kept investors at bay.
By 5pm the kiwi was at US44.85c, a touch higher than Wednesday's US44.78c close, while its Australian counterpart was worth US53.93c (US53.89c Wednesday).
"It's been a very quiet day," Bank of New Zealand currency strategist Stu Ritson said.
With Japan on holiday today and Monday, local investor action had all but dried up, he said.
In Tokyo yesterday the US dollar slipped to 2-month lows versus the yen, struck down by bearish comments from Treasury Secretary Paul O'Neill.
Testifying before the Senate Banking Committee, Mr O'Neill said he doubted governments could affect currency values either through rhetoric or by actual market intervention.
"I'm saying I think there's a real doubt about the effectiveness of intervention or words about intervention," he said.
That saw the greenback skid to a low of 126.96 yen in Tokyo. In New Zealand it closed at 127.06 yen against 128.52 yen at yesterday's close.
In the New Zealand market it was the kiwi-aussie cross that provided most interest yesterday, with the kiwi rising to A83.50c -- a key technical level -- during the day, before settling at A83.17c from A83.10c at Wednesday's close.
With little in the way of data due out, dealers expected the kiwi to trade between US44.70c and US45c overnight. On the other crosses at 5pm it was at 0.4945 euro (0.4972), 56.99 yen (57.55), 30.59 pence (30.72) and 0.7188 Swiss francs (0.7239). The aussie was buying $NZ1.2030. ($NZ1.2036).
The monetary conditions index was at minus 482 (minus 467), the trade weighted index was at 53.13 (53.29), and 90-day bank bills were at 5.78 per cent (5.79).
On the debt market, the April 2004 bond yields were at 6.12 per cent (6.11), the November 2006s were at 6.62 per cent (6.60), and the November 2011s were at 6.75 per cent (6.75).
- NZPA
<i>Currency:</i> Kiwi rangebound as Asian holidays loom
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