KEY POINTS:
The New Zealand dollar held steady on major cross rates today. except the yen, where it gained after the Bank of Japan failed to enact a previously signalled rate rise.
It rose to 84.33 yen - a 13-month high - from 83.70 around 5pm yesterday, shortly before the BOJ made its announcement.
The NZ dollar also strengthened slightly against the greenback, despite a raft of generally robust US economic data.
The kiwi was buying US69.48c at 5pm against US69.42c. It is close to Wednesday's level, just before the announcement of a 0.2 per cent fall in quarterly Consumer Price Index that knocked half a cent off its value.
Economists are totally divided on whether the Reserve Bank will hike rates on Thursday. More ammunition came in today for the bank to sit on its hands, with retail sales falling a seasonally adjusted 0.2 per cent in November and house prices did not rise.
BNZ analyst Stephen Topliss said he still believed there was a risk of the economy "seriously overheating", strongly advocating a rate rise.
Against the Australian dollar, the kiwi ended on A88.06c, little changed from yesterday's A88.01c close. Against the US dollar, the aussie rose to US78.86c from US78.87c.
The NZ dollar trade weighted index eased to 68.98 from 68.87.
BNZ currency strategist Danica Hampton said the NZ dollar again benefitted from its appeal as a relatively high yielding currency.
It had been propped up by demand for the cross with the yen following the BOJ's interest rate decision.
The yen fell to a four-year low against the US dollar. It hit a new nine-year low against the Australian dollar and was stuck close to an eight-year low against the pound, as currencies where interest rates are steep or set to rise further continue to be the winners among yield-starved market players.
"Bigger picture, the yen is going to weaken against everything," said one senior trader at a European investment bank in Tokyo.
The dollar was little changed from late New York trade near 121.25 yen while the euro was little changed near US$1.2965 shaking off losses the previous session after another array of upbeat US economic data suggested that the Federal Reserve would be in no rush to trim interest rates from 5.25 per cent for a while yet.
Currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US69.48c US69.42c
NZ dlr/Aust dlr A88.06c A88.01c
NZ dlr/euro 0.5353 0.5354
NZ dlr/yen 84.33 83.70
NZ dlr/stg 35.18p 35.18p
NZ TWI 68.98 68.87
Australian dollar US78.86c US78.87c
Euro/US dollar 1.2978 1.2963
US dollar/yen 121.37 120.57
- NZPA