The New Zealand dollar experienced a quiet day's trade yesterday, tracking the movements of the Australian currency, Deutsche Bank foreign exchange vice-president Andrew Burdon said.
The kiwi fell to 45.98USc after closing at 46.32c on Monday, while the aussie closed on local markets at 58.40USc, up slightly from 58.29c on Monday.
The recent illiquid market meant any flows were resulting in exaggerated moves in the currency, the Hongkong and Shanghai Banking Corporation said.
Mr Burdon said the kiwi traded in the 45.90c to 46.10c range, with buying around the 45.80c mark and offers at 46.60c.
The local currency market was waiting for guidance from Australian inflation numbers today, and the kiwi could be expected to continue following the aussie dollar, he said.
Preliminary New Zealand June merchandise trade figures would also be released today but, apart from those announcements, dealers said there was little to shift the kiwi in the short term.
US Federal Reserve chairman Alan Greenspan was due to speak to Congress overnight, which could have an indirect impact on the local currency if he dropped any hints on whether he would move interest rates next month.
The Trade Weighted Index was down slightly at 51.69 (51.87) and with the 90-day yields at 6.82 per cent (6.80), the Monetary Conditions Index eased from minus 488 to minus 515.
- NZPA
Dollar loses grip on 46USc
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