KEY POINTS:
The New Zealand dollar held firm today despite rumours yesterday of the Reserve Bank intervention to sell the kiwi.
Dealers suspect another assault on US76c was likely as the greenback weakened.
The kiwi closed on US75.54c, having peaked overnight at US75.75c against its US75.47c close yesterday.
ANZ chief dealer Murray Hindley said the kiwi was largely in the hands of external data. Another weak set of US housing starts data could see the US dollar soften again and put more upward pressure on the kiwi.
At present, it had support at US75.30c and was meeting resistance at US75.75c. But he said US76c was not a magic level and there was no reason to believe the Reserve Bank would intervene again at that level.
A Reuters poll of economists said they see a smaller probability of the RB raising interest rates again at its next review.
Mr Hindley noted the kiwi cross against the yen was continuing to firm -- hitting a 20-year high of 93.42 against 93.25 yesterday. There was no sign of reduced interest from carry traders, who borrow in low yield currencies and invest in high yielders.
"The cross is holding up on continued yield buying out of Japan," Mr Hindley said.
Against the Australian dollar the kiwi held steady, closing on A89.62c, having eased down on Monday.
Among the major currencies, the yen hit a record low versus the euro and held near a 4-1/2-year trough against the dollar, pressured by the view that Japanese interest rate rises will be outpaced by those of other central banks.
The US dollar remained weak against the euro on a slide in benchmark US Treasury yields, which have retreated from five-year highs hit last week on data showing core inflation pressures easing.
Reuters currency rates:
4.30pm today 5.15pm yesterday
NZ dlr/US dlr US75.54c US75.47c
NZ dlr/Aust dlr A89.62c A89.59c
NZ dlr/euro 0.5629 0.5636
NZ dlr/yen 93.42 93.25
NZ dlr/stg 38.07p 38.15p
NZ TWI 73.61 73.61
Australian dollar US84.31c US84.23c
Euro/US dollar 1.3423 1.3393
US dollar/yen 123.62 123.57
- NZPA