The New Zealand dollar pushed back above US61c today, with the market waiting on information due later in the week.
About 5pm the kiwi was buying US61.15c from US60.80c this morning. It was also higher on the day against the Australian dollar at A83.97c from A83.85c, against the yen at
72.17 from 71.84, and the euro 0.5047 from 0.5029. The TWI was up from 62.72 to 62.99.
In March the New Zealand currency reached a 22-month low of US59.93c.
Westpac Institutional Bank today said it expected consolidation in the kiwi's value against the greenback this week as the market considered the US currency's next move
In the medium term it expected further decline of the New Zealand currency against the greenback and recommended importers take advantage of any moves to the US61.50c to US62c region.
Earlier today a stronger US dollar had weighed on the kiwi after solid March data for US payrolls released on Friday cemented expectations the Federal Reserve will lift its funds rate for a 16th straight time to 5 percent at its next meeting in May, pushing the dollar up around 1 percent against the euro.
More investors also expect the central bank to raise rates again after May.
The euro fell sharply at the end of last week after European Central Bank chief Jean-Claude Trichet said that the central bank did not share the same view as the market, which had girded for a clear signal that the ECB would increase interest rates in May.
Data out this week includes the New Zealand Institute of Economic Research's Quarterly Survey of Business Opinion, due tomorrow morning, and February retail sales on Thursday.
The latest Reuters poll shows economists expect retail sales to have risen 0.3 percent in February from the previous month and to have risen 3 percent on a year ago.
5pm today 5pm Friday
NZ dlr US61.15c US61.38c
NZ dlr/Aust dlr A83.97c A84.02c
NZ dlr/euro 0.5047 0.5030
NZ dlr/yen 72.17 72.24
NZ dlr/stg 35.04p 35.04p
NZ TWI 62.99 63.03
Australian dollar US72.82c US73.05c
Euro/US dollar US1.2111 US1.2198
US dollar/yen 118.04 117.69
- NZPA
