News that headline annual inflation had reached 2 per cent in the June year had no impact yesterday on the New Zealand dollar, which continued to tread water.
"There has been very little interest in the kiwi," a currency dealer said. "CPI data came out largely on expectations and actual flows have been minimal.
"The currency is surprisingly well supported given the CPI and what the Australian dollar is doing at the moment. But it's almost more a lack of interest than being well supported. We have had a week now of basically no moves."
The kiwi closed a touch lower at 46.07USc from Friday's close at 46.14c.
The Australian dollar locally lost more ground, to be down at 58.46USc from 58.59c at the end of last week.
On the cross rates the kiwi was higher at 78.95Ac.
With the yield on 90-day bank bills up three basis points at 6.85 per cent, from 6.82 per cent, monetary conditions firmed slightly with the index at minus 502, from minus 505.
In the debt market a dealer said: "The CPI was marginally better than expected. That caused bonds to hang in reasonably well. They were a touch weaker on the day but that was largely a function of a sell-off in the US treasury market on Friday, not anything to do with our CPI."
Short-dated bond prices ended two to five points weaker.
In New York, US treasuries took a beating after a variety of economic data threw doubt on the belief that US growth was slowing.
- NZPA
Kiwi shrugs off inflation data
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