The New Zealand dollar took it easy yesterday, making little headway by the end of the session beyond its morning levels.
The kiwi was supported by continued weakness in the US dollar ahead of central bank meetings around the world this week.
Bancorp Treasury Services director Jon Clarke said New Zealand's benchmark interest rate of 5.50 per cent was expected to keep its distance above those in the developed world.
Central banks in Australia, the US, Britain and Europe were expected to either leave their rates unchanged or cut them.
"The market is pricing in the fact that we are going to get some further cuts in the official cash rate in coming months," Clarke said.
"Our path forward with lower rates is not much out of line with the general trend anyway. It's not so much whether they cut or don't ... Whether we're 5.50 per cent or 5.25 per cent, on a relative basis we're still quite attractive."
The session was quiet, given the holiday in Japan and a bank holiday overnight in London. By 5pm, the kiwi was at 56.40USc.
On the data front, the ANZ commodity price index, March quarter labour cost index, and February's quarterly employment survey are due out today. The March quarter Household Labour Force Survey and export trade data for March are out on Thursday.
- NZPA
<I>Currency:</I> Rate differential props up dollar
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