The New Zealand dollar inched higher against the US dollar today, retaining its lustre as a high-yielding currency but treading a narrow 30-point range during the day.
The kiwi was buying US63.78c, up from US63.51c at 5pm on Friday, and gained against the Australian dollar to trade at A83.95c from Friday's A83.46c.
The NZ dollar was at 0.4983 euro from 0.4971 on Friday evening, and 74.67 yen from 74.11.
"Overall investor sentiment towards the NZD remains positive on the back of fresh Eurokiwi and Uridashi issuance, and investors' renewed appetite for high yielding currencies," said BNZ currency strategist Danica Hampton.
High-yielding currencies were returning to favour against the US dollar on expectations the US Federal Reserve had ended its cycle of interest rate rises, she said.
As a result of attractive returns, offshore issuance of NZ-dollar denominated bonds aimed at European and Japanese investors reached a six-month high this month of around NZ$1.013 billion, the BNZ estimated.
The domestic calendar is light this week, with the highlight the National Bank of NZ Business Outlook on Wednesday.
The yen hit a record low against the euro today, due to expectations that the Bank of Japan will take its time raising interest rates.
In contrast, the European Central Bank is seen raising interest rates further before the year-end after it lifted the key rate to 3 per cent earlier this month.
Reuters currency rates:
5pm today 5pm Friday
NZ dlr/US dlr US63.78c US63.51c
NZ dlr/Aust dlr A83.95c A83.46c
NZ dlr/euro 0.4983 0.4971
NZ dlr/yen 74.67 74.11
NZ dlr/stg 33.73p 33.64p
NZ TWI 63.83 63.52
Australian dollar US75.90c US76.08c
Euro/US dollar US1.2798 US1.2776
US dollar/yen 117.08 116.68
- NZPA
<i>Currency:</i> NZD in tight range against greenback
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