The US dollar gained favour today, knocking the kiwi back down under the US66c mark.
At 5pm, the kiwi was at US65.75c, from US66.13c at 8.30am, which was its highest opening level since early April.
Tonight's close was virtually unchanged from the US65.73c the kiwi was buying at 5pm last night. During the day it traded between US65.75c and US66.25c.
ANZ Investment Bank's head of foreign exchange, John Body, said the kiwi had softened today on the back of a strengthening greenback.
"The kiwi has been caught more in a US dollar recovery into Asia, as opposed to anything that's been driven domestically," Mr Body said.
"It's not a particularly significant move in terms of size, but it's a reflection of the fact that the currency's appreciated very quickly in a very short space of time and it's just a bit of profit taking."
He said there was US dollar strength across the board today, against the aussie, euro and the pound.
"Really it's just a correction of the recent US dollar weakness."
He said the kiwi could drop a little more overnight, possibly dipping towards US65.30c, but from there could start to track back towards US68c.
At 5pm tonight the Australian dollar was at US72.76c (from US72.45c at 5pm last night).
The euro was at US$1.2358 (US$1.2398), while the US dollar was buying 108.69 yen (107.94).
Meanwhile, the trade-weighted index was at 66.08 (65.97).
On the crosses the kiwi was buying A90.63c (A90.75c), 35.39 British pence (35.38), 0.5319 euro (0.5303), 71.45 yen (70.97), and 0.8109 Swiss francs (0.8049).
The monetary conditions index was at plus 670 (644).
On the money market, 90-day bank bill yields were at 6.23 per cent (6.22 per cent). February 2006 bonds were at 5.98 per cent (5.97), July 2009s were at 6.08 per cent (6.04), and April 2013s were at 6.17 per cent (6.14).
- NZPA
<i>Currency:</i> Kiwi softens as Greenback rallies
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