The New Zealand dollar traded in a tight range during yesterday's local session as it and its Australian counterpart looked to the euro for direction.
At 5pm in Wellington the kiwi was at US57.77c from US57.69c at 5pm on Monday, while the aussie was at US64.95c from US64.77 on Monday.
ANZ Investment Bank senior dealer Mark Elliott said the kiwi opened on its high today of US57.86c, before easing in morning trade to an intra-day low of US57.54c. During the afternoon it rose slightly to its finishing level.
At the moment the kiwi was ' 'really just following action in the way that the euro is trading versus the US dollar", Mr Elliott said.
"The euro sort of reacted back of its high on Monday night and the kiwi followed suit as did the aussie," he said. "It's really just a US dollar story again."
Mr Elliott expected to see the kiwi trade in a US57.50c to US58c range last night.
Meanwhile the euro, was at US$1.1095c at 5pm yesterday in Wellington from US$1.1082 at 5pm on Monday.
Against the aussie, the kiwi was A88.95c (A89.04c), while the US dollar was buying 116.59 yen (117.30).
On the crosses at 5pm, the kiwi was buying 67.34 yen (67.67), 36.44 pence (36.32), 0.8025 Swiss francs (0.8000), and 0.5206 euro (0.5206).
The monetary conditions index was at plus 230 (234), the trade-weighted index was at 62.04 (62.09) and 90-day bank bill yields were at 5.16 per cent (5.13).
The February 2005 yields were at 5.40 per cent (5.34), the November 2006s were at 5.67 per cent (5.60), and the November 2011s were at 6.00 per cent (5.91).
- NZPA
<I>Currency:</I> Kiwi trades in tight range
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