KEY POINTS:
The high-yielding New Zealand dollar sat above A90c today, but was unable to regain its 11-month overnight high of A90.42c.
Continued interest from overseas investors in high New Zealand returns, and Australia's reduced prospects of further interest rate rises, have compounded the kiwi's popularity.
By 5pm, the kiwi was at US69.62c, up slightly from US69.56c late yesterday afternoon, while against the Aussie it was buying A90.08c from A89.94c.
The Australian dollar -- the rare high-yielding currency that has weakened of late -- was down to US77.28c from US77.43c against the US dollar.
It has continued to soften after inflation data last week slashed the market's expectations of further monetary policy tightening by the Reserve Bank of Australia.
A majority of economists expect the Reserve Bank of New Zealand to raise interest rates by 25 basis points to 7.5 per cent on March 8.
"(RBNZ Governor Alan) Bollard was pretty hawkish last week, so probably the chance for the gap to widen between us and Australia in the short-term has probably got people still prepared to invest short-term in New Zealand," said ANZ Investment Bank chief dealer, Murray Hindley.
The kiwi would continue to stay put between US69.40c and US69.80c, until fresh data provided impetus, Mr Hindley said.
"Overnight, it's hard to see it outside of recent ranges. It still seems to be doing well on the crosses, above A90c, and 53.50c against the euro."
The last day has seen $400 million of fresh NZ-dollar-denominated issuance to overseas retail investors.
A sharp 4.9 per cent fall in the number of new dwellings approved in December lifted hopes today the Reserve Bank will stave off hiking interest rates in March, but failed to depress the kiwi.
Monthly trade figures are out tomorrow, along with an update of the Government accounts, and external migration data is due on Friday.
The US dollar slipped as investors booked profits on its run to a four-year high against the yen, even as soft economic data stirred more doubts about whether the Bank of Japan will lift interest rates next month.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US69.62c US69.69c
NZ dlr/Aust dlr A90.08c A90.01c
NZ dlr/euro 0.5370 0.5393
NZ dlr/yen 84.78 84.70
NZ dlr/stg 35.46p 35.47p
NZ TWI 69.48 69.56
Australian dollar US77.28c US77.43c
Euro/US dollar 1.2969 1.2925
US dollar/yen 121.76 121.53
- NZPA