5.30pm
The kiwi dollar gave ground to the United States dollar today but held firm against the Australian dollar where the market was on holiday for Queen's Birthday.
The Australian holiday meant the market was quiet, traders said.
At 5pm, the kiwi was buying US62.63c from US62.95c at 5pm Friday and US62.90c at the opening. From its opening high, it traded down to US62.48c.
Meanwhile, the aussie closed at US68.88c (US69.30c).
The euro weakened in response to European elections where incumbent Governments generally lost ground. The market did not like the result, particularly in respect to Italy, and sold the euro and vicariously, the kiwi and aussie as well.
US inflation data out on Wednesday was likely to be the market's focus and a Wellington dealer said his bank was expecting the US Federal Reserve to take quite a strong stance to knock inflationary expectations. A 50 basis point rate rise was a possibility and that would see the US dollar firm further.
He said it was likely the kiwi would continue to trend lower against the greenback but hold, or even appreciate, against the aussie.
At the 5pm close, the US dollar was trading at 110.95 yen (110.00 yen at 5pm Friday), and the euro was buying US$1.1970 (US$1.2013).
BNZ forex strategist Sue Trinh noted the Australian cross rate had rallied without pause for the past week or so for a gain of around 3 per cent.
"Typically when you get such strong moves, a little bit of consolidation is generally in order," she said.
On the crosses, the kiwi was buying 0.5234 euros (0.5231), 34.51 British pence (34.30), 69.50 yen (69.24), 0.7918 Swiss francs (0.7893).
The trade-weighted index was at 64.34 (64.40), while the monetary conditions index was at plus 503 (508).
On the money market, 90-day bank bill yields were at 6.06 per cent (6.07) February 2006 bonds were at 5.93 per cent (6.02 per cent), July 2009s were at 6.22 per cent (6.23) and April 2013s were at 6.39 per cent (6.38).
- NZPA
<I>Currency:</I> NZ dollar eases against the greenback, holds firm on aussie
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