KEY POINTS:
The New Zealand dollar shrugged off weakness earlier in the week to end today and the week above US69c.
The kiwi closed in local trading today on US69.05c against US68.86c at the same time yesterday.
It also recovered ground against the Australian dollar, closing on A88.50c from A87.97c at 5pm yesterday.
Losses against sterling were minimal despite the surprise rate hike by the Bank of England overnight. The cross rate closed on 35.48p against yesterday's 35.60p finish.
The trade weighted index ended on 68.82 from 68.43.
Today's strength was despite building data that appeared to reduce the chance of the Reserve Bank hiking interest rates this month. The number of new dwelling units authorised in November fell a seasonally adjusted 12 per cent from the previous month. But economists doubt residential building is slowing.
Citigroup Australian and New Zealand economic and market analysis director Annette Beacher said the "overall trend for housing sector activity remains uncomfortably high".
She remained of the view that it was prudent for the Reserve Bank to lift the cash rate to 7.5 per cent this month, "a strong signal to start 2007".
Next week's focus will be on the Consumer Price Index on Wednesday and NZIER's Quarterly Survey of Business Opinion the day before.
The CPI is expected to record a very slight rise, or even a small fall, due to petrol price falls although economists believe underlying inflation pressures remain strong.
In major currency trading, the US dollar hit a 13-month peak against the yen and a 1-1/2-month high versus the euro as investors waited for US data to help gauge the chances of a Federal Reserve interest rate cut later this year.
A string of solid US economic data over the past week has boosted expectations that the Fed is in no hurry to lower the funds rate from 5.25 per cent.
The euro fell against several currencies, including the dollar, in the previous session after European Central Bank President Jean-Claude Trichet failed to signal a February rate rise in comments made after a policy meeting.
The ECB left rates at 3.50 per cent at the meeting, as foreseen, but many analysts had expected a clear signal for a future rate rise.
The euro also dropped sharply against sterling, which rallied against several currencies after the BOE's surprise rate rise.
Rates:
5pm today 5pm yesterday
NZ dlr/US dlr US69.05c US68.86c
NZ dlr/Aust dlr A88.50c A87.97c
NZ dlr/euro 0.5351 0.5314
NZ dlr/yen 83.29 82.42
NZ dlr/stg 35.48p 35.60p
NZ TWI 68.82 68.43
Australian dollar US78.01c US78.28c
Euro/US dollar 1.2901 1.2958
US dollar/yen 120.58 119.72
- NZPA