The New Zealand dollar held its ground around the 42.20USc mark yesterday, apparently unruffled by the conclusion of the US presidential race.
Democrat Al Gore conceded the election, ending weeks of political uncertainty.
"The kiwi has been relatively steady. It opened around the 42.10USc area and edged up towards the close to be around 42.20USc, really in response to a slightly stronger Aussie dollar," BNZ chief currency dealer Mike Symonds said.
Mr Symonds said both the kiwi and the aussie appeared to be entering a period of consolidation following recent gains.
"We have had some decent moves in the last couple of days, and all this is just a consolidation phase after two or three busy days."
In the short term, Mr Symonds said, the NZ dollar was likely to maintain a downside bias - marred by US dollar strength. But with US growth figures pointing towards a slowdown in the American economy, there could be light at the end of the tunnel for the kiwi.
"The view here is that while the US dollar is responding in a positive manner to the presidential news, at the end of the day the markets will begin focusing on what is happening with the US economy.
"Our view is that we are going to see further signs of weakness in the economy and that is going to be reflected in a weaker US dollar - a big plus for the kiwi."
- NZPA
<i>Currency:</i> Kiwi takes time out to settle
AdvertisementAdvertise with NZME.