The New Zealand dollar closed marginally higher today.
At 5pm, the kiwi was fetching US71.12c (US70.74c at the same time yesterday). After trading as low as US70.92c today, the kiwi closed on its session highs.
Westpac currency strategist Johnathan Bayley said the kiwi's trading range showed how quiet today's session
was.
"If anything there are a lot of players squaring there positions before the end of the year," he told NZPA today.
"Volume and flow have been light."
Today's December Economic Fiscal Update had no discernable effect on forex trade, Mr Bayley said.
Tonight (NZT) the US Federal Reserve is widely anticipated to hike its benchmark interest rate from its current 2 per cent.
Another broker said narrowing yield differentials between the greenback and most other currencies would tend to support the greenback, "but then you come back to the (US) current account deficit".
Meanwhile, the Australian dollar was buying US76.04c (US75.36c).
The US dollar was at 104.92 yen (104.92), while the euro was at US$1.3298 (US$1.3281).
On the crosses the kiwi was buying A93.50c (A93.80c), 0.5348 euro (0.5328), 37.03 British pence (36.88), 74.63 yen (74.21) and 0.8216 Swiss francs (0.8178).
The trade-weighted index was at 69.07 (68.83) and the monetary conditions index was at plus 926 (909).
On the money markets, 90-day bank bill yields were at 6.75 per cent (6.74), February 2006 bonds at 6.31 per cent (6.30), the July 2009s were unmoved on 6.01 per cent, and April 2013s were at 5.97 per cent (5.99).
- NZPA
