The New Zealand dollar was quiet in a tight range yesterday, with buying on the dips and no real momentum either way. The kiwi finished at US45.20c from 45.13c on Wednesday.
The aussie was at US59.16c (58.78c) and the kiwi took heart from that gain.
"The aussie has found support on any dips and the euro is looking reasonably well-bid, so people were happy to pick kiwi up on the dips without getting too positive," said a currency dealer.
The kiwi will look to the euro overnight for guidance after its weakness weighed on the Australasian currencies on Wednesday.
"Things are reasonably positive at the moment," the dealer said.
The Reserve Bank's decision to leave its official cash rate at 6.50 per cent was "no impediment" to buying the kiwi. If anything people were pleased by the bank's dovish stance on inflation given the economy's weakness.
"Whether that translates into new investment in New Zealand is yet to be seen."
On the aussie cross, the kiwi continued to slide from a peak in mid-July around A79.40c. It finished yesterday at 76.39c. The dealer said there was nothing to say that trend was over.
The trade-weighted index was at 50.90 (50.92) and with 90-day bills at 6.70 per cent (6.73), the monetary conditions index was at minus 603 (-598).
- NZPA
<i>Currency:</i> Kiwi still sliding against $A
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