After regaining some lost ground against the greenback in early trading this morning the kiwi drifted off again this afternoon.
The kiwi was buying US65.47c in Wellington at 5pm from US64.81c at 5pm yesterday having traded between US65.30c and US65.80c today.
The Australian dollar was buying US75.96c (US75.23c at 5pm yesterday).
"There was no movement from the RBA (Reserve Bank of Australia) today and after that the kiwi and aussie both dribbled lower," a Wellington dealer said.
As expected, the RBA today announced it was leaving its cash rate unchanged at 5.25 per cent. It was the fourth straight month the bank has left the rates untouched.
A Federal election, expected anytime from August to November could influence the timing of any rate changes this year, analysts say. Some economists expect a rate cut in late 2004.
The dealer said the kiwi could sink as low as US65.20c overnight, but it would all depend on how the euro fares.
Last night. the euro rose against the US dollar for the first day in three after Jose Manuel Gonzalez-Paramo, who will join the European Central Bank's policy-setting board in May, suggested borrowing costs have fallen enough to spur growth.
The US dollar was fetching 105.71 yen in Wellington this evening (106.35) and the euro was buying US$1.2087 (US$1.202).
Meanwhile, on the crosses, the kiwi was buying A86.20c (A86.16c), 0.5416 euro (0.5400), 69.22 yen (68.93), 35.57 British pence (35.59), and 0.8455 Swiss francs (0.8447).
The trade-weighted index was at 65.43 (65.05), while the monetary conditions index was at plus 529 (508).
Ninety-day bank bill yields were at 5.56 per cent (5.54).
The February 2006 yields were at 5.46 per cent (5.49), July 2009s were at 5.79 per cent (5.83), and April 2013s were at 5.96 per cent (6.03).
- NZPA
<i>Currency:</i> Kiwi rises in morning, but drifts off in afternoon
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