The New Zealand dollar withstood a mild sell-off following of Saturday's attack in Saudi Arabia and by the end of a relatively quiet local session had recovered to finish the day roughly where it began.
At 5pm in Wellington the kiwi was buying US63.10c (from US63.33c at 5pm on Friday), having traded between US62.87c and US63.20c. The Australian dollar was at US71.43c (US71.80c).
ANZ Investment Bank foreign exchange dealer Glenn Mackersy said the market had been expecting some impact on commodity currencies -- such as the kiwi -- from the incident in Saudi Arabia.
" So there was a little bit of selling early on in kiwi and aussie but support at US62.80c -- US62.85c held quite well."
However, with holidays today in New York and Britain, "there was never going to be a lot of action".
He expected the holidays to produce muted offshore sessions tonight.
Furher out, Mr Mackersy said the kiwi would likely take its cue from overseas data.
The Reserve Bank of Australia is expected to leave its cash rate unchanged this week.
Expectations that New Zealand's Reserve Bank will hike at its next review mean the kiwi may rise against the aussie as it becomes the higher yielding of the two currencies.
On the crosses, the kiwi was buying A88.36c (A88.21c), 34.39 British pence (34.45), 69.13 yen (70.08), 0.7905 Swiss francs (0.7881), and 0.5169 euros (0.5160).
The trade-weighted index was at 63.94 (64.13), while the monetary conditions index was at plus 462 (477).
On the money market, 90-day bank bill yields were unchanged at 5.97 per cent, February 2006 bonds were at 5.88 per cent (5.86), July 2009s were at 6.09 per cent (6.05), and April 2013s were at 6.23 per cent (6.19).
- NZPA
<i>Currency:</i> Kiwi weathers early sell off in quiet session
AdvertisementAdvertise with NZME.