NZ dollar keeps within tight range

The New Zealand dollar stayed within comparatively restricted trading ranges overnight Friday, as markets faced a lack of real direction.

By 8am today the NZ dollar was buying US65.77c, from US65.52c at 5pm Friday, having ranged between US65.85c and US65.40c.

In its morning briefing notes, ANZ bank said the local and offshore sessions had been "extremely quiet" for the NZ dollar.

"It remained trapped with a tight trading range as the focus of markets continued to be in other areas," ANZ said.

A quiet start to the week was likely today, it said.

Logically, markets should position themselves for releases in this country later this week, with the Reserve Bank's next interest rate decision due on Thursday.

"...but the ominous spectre of US treasury auction volumes has markets betting heavily against any US dollar recovery".

The NZ dollar gained against the Japanese currency, lifting to 62.41 yen at 8am from 62.12 at 5pm Friday, while it was little changed against the European currency at 0.4625 euro by the local opening.

Against the Australian dollar, the kiwi also showed little change, easing down to A80.32c. The trade weighted index rose to 61.48 at 8am from 61.42 at 5pm on Friday.

The US dollar fell against the euro on Friday as figures showing a stabilising euro zone economy and a good week for the US stock market eroded demand for the greenback as a safe haven.

- NZPA