KEY POINTS:
The New Zealand dollar reached its highest level against the greenback in nearly three weeks but failed to push through the US60c level.
From around US58.15c last night the kiwi pushed up to US59.92c earlier today, then remained in a narrow band to be at US59.69c by 5pm.
The NZ dollar also reached a near-two month high against the Japanese currency early today, getting to around 56.30 yen and by the local close was buying 56.0 yen.
Against the euro, the NZ dollar was at 0.4413 by 5pm, little changed from its 8am level, while the kiwi rose slightly against the Australian to A82.67c at 5pm from A82.42c at the local open. The trade weighted index was 58.40 at 5pm from 58.35 at 8am.
New Zealand economic news out today showed the country's monthly trade deficit narrowed to $520 million in November, as exports rose faster than imports.
But the commodity price picture was more gloomy with whole milkpowder prices falling 9.3 per cent from December at Fonterra's latest internet auction.
On top of that the ANZ commodity price index recorded a 7.4 per cent fall in December, the fifth consecutive monthly drop in the series. The index is now 27 per cent below its peak last July.
The US dollar rose against the euro to hover near a one-month high hit the previous day, continuing to draw support from gains in US stocks on hopes for an aggressive stimulus package from the Obama administration.
Persistent signs of economic weakness in the euro zone that may force its central bank to cut interest rates further also helped push the euro down against the US dollar as well as the yen. The yen fell towards a one-month low against the greenback.
Reuters currency rates:
NZ dlr/US dlr US59.69c US58.79c
NZ dlr/Aust dlr A82.67c A82.15c
NZ dlr/euro 0.4413 0.4322
NZ dlr/yen 56.00 54.73
NZ dlr/stg 40.01p 40.08p
NZ TWI 58.40 57.53
Aust dlr/US dlr US72.20c US71.55c
Euro/US dlr 1.3534 1.3608
US dlr/yen 93.79 93.09
- NZPA
