KEY POINTS:
The New Zealand dollar held steady in dull trading today after being bounced around by the greenback overnight.
At 4.30pm, it was buying US76.25c, having fallen to US75.90c from US76.15c at 4.30pm yesterday.
Against the high-flying Australian dollar, which hit a 23-year against the US currency on Monday, the kiwi slipped to A84.92c from A85.38c yesterday.
The publication today of a much bigger than expected budget surplus for the year to June 30 failed to ignite the currency market.
Crown accounts recorded a $8.7 billion operating surplus - $2 billion more than forecast.
Finance Minister Michael Cullen was left with a cash surplus of $2.6 billion - a $4.1 billion improvement on what was forecast when the budget was written in May last year.
The NZ dollar trade weighted index closed on 71.70 from 71.83 at 4.30pm yesterday.
In major currency trading, the US dollar was also steady, having retreated from a two-week high against the euro yesterday as traders reckoned the rally of the past few sessions had been overdone.
Growing demand for higher-yielding currencies like the kiwi is seen weighing on the dollar, they said.
Meanwhile, some in the market said a rally in global stocks that helped to drive the Dow Jones industrial average and the S&P 500 index to record highs today may also prompt selling in the low-yielding yen for assets in high yielders.
The yen drifted near a 2-1/2-month low against the Australian dollar and a two-month trough versus the New Zealand currency which rose to 89.37 yen against 89.24 yesterday.
Reuters currency rates
(5pm today 4.30pm yesterday)
NZ dlr/US dlr US76.25c US76.15c
NZ dlr/Aust dlr A84.92c A85.38c
NZ dlr/euro 0.5406 0.5431
NZ dlr/yen 89.37 89.24
NZ dlr/stg 37.38p 37.40p
NZ TWI 71.70 71.83
Australian dollar US89.79c US89.20c
Euro/US dollar 1.4103 1.4018
US dollar/yen 117.19 117.24
- NZPA
