The New Zealand dollar was rangebound again yesterday, although the tone remained positive, dealers said.
"It's been a very quiet day," Bank of New Zealand currency strategist Stu Ritson said.
"We did go up and have a look at the 32-month highs around US50.45c, but there's still some decent offering interest up there and the kiwi quickly ran out of steam."
By 5pm the kiwi was at US50.36c from US50.25c at Monday's close. Its Australian trading partner was at US56.32c (US56.33c).
"Overall the tone is still very positive," Mr Ritson said.
"We saw some fresh eurokiwi issuance overnight, which is where offshore investors look to buy New Zealand-denominated bonds. So, we're seeing those sorts of flows and they're definitely providing support."
Mr Ritson expected the kiwi to range between US50.10c and US50.40c overnight.
"I don't think it has the momentum at this stage to break to the topside. If it can't do that then that's probably the most natural range."
Against its key trading partners at 5pm the kiwi was buying A89.43c (A89.22c), 0.4988 euro (0.4970), 62.29 yen (61.76), 31.89 pence (31.81), and 0.7351 Swiss francs (0.7311).
The Australian dollar was at $NZ1.1183 ($NZ1.1209).
The trade weighted index was at 57.29 (57.07), the monetary conditions index was at minus 89 (minus 109), and the 90-day bank bill yield was flat at 5.92 per cent.
On the bond market, the April 2004s were at 5.72 per cent (5.75), the November 2006s were 6.01 per cent (5.98), the November 2011s were at 6.26 per cent (6.29), and the April 2013s were at 6.31 per cent (6.34).
- NZPA
<i>Currency:</i> Kiwi rangebound, bid tone remains
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