5.40pm
The New Zealand dollar bobbed around the US61c level today ahead of the long weekend.
By 5pm the kiwi was at US60.97c, little changed from US60.98c late yesterday, while the Australian dollar was at US70.25c (US70.54c).
The kiwi traded between US60.75c and US61.05c during the day, having receded from its overnight high of US61.20c.
It was likely to be constrained between a slightly wider range of US60.60c and US61.20c during the weekend, a local dealer said.
"It failed to rally in the face of a stronger aussie and euro."
New Zealand is closed on Monday for Labour Day although some local traders will be active.
"It all depends on the US dollar. We've got guys in on Monday and if the euro is up -- and people have it going up to US$1.21 -- (kiwi) could test new highs. If the US dollar continues to go higher, we'll drift off," he said.
The forex implications were uncertain for the ANZ's purchase of the National Bank announced today, with a A$4.915 billion ($5.71 billion) sum for its British owners Lloyds TSB.
Another large deal was announced today, with receivers selling the entire forestry estate and some assets of the now defunct Central North Island Forest Partnership to Harvard University in the United States.
The price was not released but the assets were valued at up to $650 million.
In Tokyo the euro and pound gained ground after a big sell-off in US and Japanese stocks this week, with sterling rising to five-year highs of US$1.70 ahead of British growth data.
Sterling was supported by prospects of an interest rate hike by the Bank of England when its Monetary Policy Committee meets next month.
In Wellington at 5pm the euro was at US$1.1824, little changed from US$1.1822 yesterday, while the greenback rose to 109.58 yen (109.05).
On the crosses the kiwi was buying A86.79c (A86.38c at 5pm yesterday), 66.82 yen (66.48), 0.5157 euro (0.5159), 35.93 pence (35.97), and 0.7985 Swiss francs (0.7998).
The Australian dollar was at $1.1522 ($1.1822).
The monetary conditions index was at plus 292 (278), the trade-weighted index was at 62.71 (62.61), and 90-day bank bill yields were at 5.23 per cent (5.24).
The February 2005 government bond yields were at 5.48 per cent (5.46), the November 2006s were at 5.80 per cent (5.79), and the November 2011s were at 6.04 per cent (6.01).
- NZPA
<I>Currency:</I> Kiwi sidles off overnight highs
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