The New Zealand dollar served up a lacklustre performance as bullish sentiment about the US dollar continued to sweep offshore markets.
During the day the NZ dollar traded in an 8 point range, closing at US41.75c, compared to yesterday's close at US41.86c.
In contrast, the aussie traded up slightly at US51.93c from US51.84c yesterday.
"The kiwi certainly lost a bit of its gloss," said Earl White, a director at Bancorp, who said Christmas fever was setting in early.
US and Japanese public holidays were looming and liquidity in the forex and money markets was easing. Show Day in Christchurch meant that South Island exporters were also out of the picture.
Mr White said the pattern was a continuation of recent weeks, with the New Zealand and Australian currencies lying idle while euphoria about the breakthrough in the Afghani war swept overseas markets.
"There's still not enough in the economy to push the dollar higher," he said. "We spend most of the time gyrating around the US42c level."
Overnight the kiwi was picked to find support around US41.50c and resistance around the US42c level.
On the crosses at 5pm the kiwi traded at A80.41c (A80.77c at yesterday's close), 0.4721 euros (0.4741), 51.09 yen (51.05), 29.12 pence (29.03), 0.9232 marks (0.9271), and 0.6911 Swiss francs (0.6961). The Australian dollar was buying $NZ1.2437 from $NZ1.2382 yesterday.
The trade-weighted index was at 49.76 (49.88), the 90-day bank bills were at 4.88 per cent (4.86), and the monetary conditions index was almost flat at minus 900 (minus 889).
On the debt market, the March 2002 bonds were at 4.80 per cent (4.76), the April 2004s were at 5.40 per cent (5.21), the November 2006s were at 5.95 per cent (5.75), and the November 2011s were at 6.39 per cent (6.21).
- NZPA
<i>Currency:</i> NZ dollar languishes while offshore markets party
AdvertisementAdvertise with NZME.