NZ dollar emerges in firm shape

The New Zealand dollar emerged from the Christmas long weekend firmer against the US dollar and other major currencies in quiet trading this morning.

The kiwi was at US70.83c at 8am, compared with US70.54c at 4pm on Christmas Eve, after ranging between about US70.30c and US70.95c over the four-day break.

The New Zealand dollar this morning was easier against the aussie, at A79.85c from A79.95c, but higher at 0.4923 euro from 0.4916 and 64.84 yen from 64.52. The trade weighted index was at 64.72 from 64.65.

Reuters reported from New York this morning that the US dollar rose against the yen but slipped against some major currencies in holiday-thinned trading, as investors pondered about the outlook for the greenback after a recent rally.

Trade was light with many market participants in Europe off between Christmas and the New Year. Markets in the United Kingdom were also closed for a public holiday.

In Japan, Monday was the last working day of the year for many companies, which resume business on January 4.

There appeared to be very little market impact from news over the holiday weekend of an attempt to blow up a passenger plane flying to Detroit, Reuters reported.

The focus for many was whether the dollar would continue to rise next month after its rebound from a 14-year low against the yen in November.

- NZPA