KEY POINTS:
The high-yielding New Zealand dollar made up some lost ground today, after the chance of a rate rise receded in Australia.
By 5pm, the kiwi was trading around US68.47c, a touch below Friday's late afternoon level, but above its low of nearly US68c.
Against the Aussie, it was at A88.43c from A87.94c on Friday, while against the yen the kiwi was buying 83.52 from 83.25.
The kiwi capitalised on a weaker Aussie after the Reserve Bank of Australia cut its inflation forecast, indicating rates would be on hold.
Also bolstering the kiwi, finance ministers and central bankers from the Group of Seven nations decided against scolding Japan during the weekend for the weakness of the yen.
"As expected, the G7 statement stopped short of criticising the yen's weakness, in turn reducing a prominent downside risk for the New Zealand dollar -- a sharp unwinding of 'carry' trades," Westpac currency strategist Michael Gordon said.
Investors have favoured borrowing the low-yielding yen to fund investment in currencies offering greater returns, such as the New Zealand and Australian dollars.
The Reserve Bank of NZ is set to raise its 7.25 percent official cash rate at its next opportunity in early March, and data this week should solidify those expectations.
Quoteable Value said annual residential property price rises slowed to 8.8 percent in January, reflecting a gradual easing in pressure on property prices. However, that is not likely to give the central bank comfort about the soaring housing market.
The highlight of the week's calendar is fourth quarter retail trade on Thursday, while second-tier data includes the food price index on Wednesday, and the capital goods index and producer price index tomorrow.
Reuters currency rates:
5pm today 5pm Friday
NZ dlr/US dlr US68.47c US68.63c
NZ dlr/Aust dlr A88.43c A87.94
NZ dlr/euro 0.5260 0.5264
NZ dlr/yen 83.52 83.25
NZ dlr/stg 35.05p 35.03p
NZ TWI 68.28 68.23
Australian dollar US77.41c US78.06c
Euro/US dollar 1.3018 1.3039
US dollar/yen 121.97 121.28
- NZPA