The New Zealand dollar traded in a fairly narrow range today after a United States Federal Reserve rate call this morning which sprang no surprises.
At 5pm in Wellington the kiwi was at US64.80c (from US64.77c at 5pm last night), having traded in a US64.60c to US64.90c range.
"Busy morning, quiet afternoon," a Wellington dealer said.
"Most of the trading this afternoon has been between US64.80c and US64.90c -- mainly sideways movement."
He said it appeared the market was waiting to see what the European reaction was to yesterday's US Federal Reserve rate call.
The Fed lived up to expectations and kept rates on hold, saying there was plenty of slack in the US economy to allow rates to be kept low for considerable period.
"Overall there still seems to be reasonable amount of negative US dollar sentiment out there", the dealer said. "So I guess we continue to test higher levels against the US dollar."
The dealer expected the New Zealand dollar to trade in a US64.70c to US65.10c range tonight.
Meanwhile, the Australian dollar was at US74.05c (US73.99c at 5pm last night), the euro at US$1.2223 (US$1.2224), while the greenback was buying 107.30 yen (107.33).
On the crosses, the New Zealand dollar was at A87.53c (A87.55c), 0.5303 euro (0.5300), 69.54 yen (69.53), 37.16 pence (37.35), and 0.8209 swiss francs (0.8209).
The Australian dollar was buying $1.1427 ($1.1424).
The trade weighted index was at 65.19 (65.17), the monetary conditions index was at plus 494 (489), and 90-day bank bills were 5.32 per cent (5.28).
On the debt market, April 2004 bonds were at 5.16 per cent (5.14), February 2006s were at 5.66 per cent (5.62), and November 2011s were at 6.07 per cent (6.00).
- NZPA
<i>Currency:</i> Kiwi trades quietly after US rate call
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