The kiwi dollar was unmoved by Finance Minister Michael Cullen's budget today.
One dealer said, "It's had very little impact, the market's been very quiet."
The kiwi saw a bit of movement at the time of the budget, the dealer said.
"But that was more related to the fact that the euro proceeded to drop 50 points on the back of a stop loss run and the aussie managed to follow it as well. So really kiwi just got moved by US dollar forces rather than anything to do with the budget."
The kiwi was at US57.35c at 5pm in Wellington compared with US57.37c at local close yesterday after trading in a range of US57.32c to US57.55c before the budget and a tight range of US57.32c to US57.42c afterwards.
Overnight the kiwi was expected to trade in a US57.20c to US57.60c range "still looking to the euro for direction".
Today's budget saw the Debt Management Office (DMO) set a $3.2 billion government bond tender programme.
That is about $200 million larger than market expectations but about $150 million more than had been projected in the December economic and fiscal forecasts. The programme is the same size as the 2002/3 programme and will consist of 11 tenders - probably 10 of $300 million and one of $200 million.
The DMO said it would continue to issue February 2006 and April 2015 bonds.
At local close today the Australian dollar was at US64.39c compared with US64.56c at 5pm yesterday.
On the crosses at 5pm today the kiwi was buying A88.06c (A88.87c at yesterday's close), 66.60 yen (66.95), 35.53 pence (35.67), 0.7576 Swiss francs (0.7548), and 0.5012 euro (0.4987).
The aussie was buying $NZ1.1227 ($NZ1.1253).
The monetary conditions index was at plus 190 (191).
The trade-weighted index was at 61.17 (61.17) and 90-day bank bill yields were at 5.48 per cent (5.45).
The February 2005 yields were at 5.05 per cent (5.07), the November 2006s were at 5.20 per cent (5.26), and the November 2011s were at 5.55 per cent (5.60).
- NZPA
<i>Currency:</i> No budget influence on NZ dollar trading
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