The New Zealand dollar drifted lower throughout today's session after the Reserve Bank of New Zealand (RBNZ) lifted its official cash rate this morning.
At 5pm, the kiwi was fetching US61.96c (from US63.00c at the same time yesterday), having traded between US62.45c and US61.76c today. It opened at US62.15c.
The Australian dollar was at US71.97c (US73.40c).
BNZ currency strategist Sue Trinh said the RBNZ's move to lift the OCR by 25 basis points to 5.50 per cent initially saw the kiwi tiptoe higher.
"But those gains were quickly surrendered as the US dollar remained a dominant driver in the kiwi," Ms Trinh told NZPA today.
"The kiwi has been drifting lower throughout the course of the day," she said, noting that RBNZ governor Alan Bollard had also said further rates rises were on the cards.
"The interest rate hike actually supported the kiwi on the kiwi-aussie cross, so that's about 10 to 20 points higher," she said.
At 5pm, the kiwi was buying A86.10c (A85.83c), from A86.14c at 8.30am.
Looking ahead, key data out of the US was likely to affect the kiwi's trend in coming sessions.
Among the figures due is one for US first quarter gross domestic product, out tonight, and the US Federal Reserve's benchmark interest rate review on May 4.
"You could argue that the US dollar's resurgence throughout the past 24 hours has been attributed to upbeat expectations," Ms Trinh said.
Meanwhile, the greenback was buying 110.21 yen (109.03), and the euro was buying US$1.1835 (US$1.1938).
On the crosses, the kiwi was buying 0.5236 euro (0.5276), 35.00 British pence (35.08), 68.29 yen (68.67), and 0.8095 Swiss francs (0.8166).
The trade-weighted index was at 63.38 (63.89), while the monetary conditions index was at plus 397 (428).
On the debt market, 90-day bank bill yields were at 5.78 per cent (5.67).
The February 2006 yields were at 5.74 per cent (5.61), July 2009s were at 6.02 per cent (5.90), and April 2013s were at 6.18 per cent (6.07).
- NZPA
<i>Currency:</i> NZ dollar drifts lower after RBNZ lifts OCR
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