KEY POINTS:
A sluggish New Zealand dollar closed below US73c yesterday with little data to provide direction this week.
By 5pm, the kiwi was at US72.79c, down from US73.1c late yesterday afternoon. Against the Aussie, it was little changed at A88.71c.
"A pretty quiet day on the markets today, once again no real domestic data so pretty much still confined to recent ranges," ANZ Investment Bank foreign exchange head Murray Hindley said.
The kiwi traded between US72.75c and US73.07c.
"It seems to be struggling to get through US73.2c topside, and it wouldn't surprise me if we see a little bit more weakness overnight, back towards US72.5c," Hindley said.
The US dollar held near a five-week high against the euro and a three-month peak against the yen, on cooling expectations that the US Federal Reserve would cut interest rates later in the year.
Solid economic data last week has offered the US currency a respite from a wave of selling that pushed it to a record low against the euro last month. Chances that the Fed will not cut rates from 5.25 per cent have prompted some investors to pare back short dollar positions.
- NZPA