5.40pm
The New Zealand dollar traded quietly after yesterday's decision to hold interest rates but dealers predicted it was only catching its breath.
The kiwi peaked at US64.60c during the session but ended the day close to yesterday's close at US64.48c (US64.49c).
The Australian dollar was at US73.47c (US73.58c).
A minor selloff took the edge off the kiwi dollar yesterday after the Reserve Bank decided to hold the official cash rate at 5.0 per cent.
ANZ Investment Bank senior dealer Mark Elliott said the kiwi drifted off in tandem with the euro this afternoon after the European Commission floated the idea of 1970s-style exchange controls to dampen its currency.
He said he would be unsurprised if the kiwi eased 100 points over the next week but it was "short-term stalling" given the negative sentiment towards the greenback.
"This looks like a trend that's probably going to continue for the next month or two and it's probably something that's going to take the kiwi up into around the US67c mark."
Overnight he forecast the kiwi to trade around US64.60c/63.80c. Elsewhere the US dollar held above record lows versus the euro as the market waited quietly for US payroll data.
In Wellington at 5pm the greenback was buying 108.30 yen (108.22) and the euro was buying US$1.2085 (US$1.2064), after hitting a new high of $1.2160 on Thursday.
Against the yen the greenback was underpinned by talk that Japan would intervene if the US currency fell below 108 yen.
But there were doubts the markets would pay any attention to any strong US data out tonight, as to date it has been stifled by worries about the US current account deficit and Middle Eastern concerns.
The kiwi had a mixed day against other currencies, buying A87.77c (A87.65c), 0.5336 euro (0.5346), 69.82 yen (69.79), 37.44 pence (37.42), and 0.8313 Swiss francs (0.8329). The Australian dollar was buying $1.1394 ($1.1408)
The trade weighted index was at 65.28 (65.28), the monetary conditions index was at plus 498 (498), and 90-day bank bills were at 5.27 per cent (5.29).
On the debt market, April 2004 bonds were at 5.17 per cent (5.16), February 2006s were at 5.69 per cent (5.74) and November 2011s were at 6.13 per cent (6.19).
- NZPA
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