The New Zealand dollar shrugged off a flurry of excited trading this morning to finish today's session in the all too familiar US72.80c mark, a dealer said.
At 5pm, the kiwi was at US72.82c (from US72.92c at 5pm yesterday), having today ranged between US72.78c and US73.08c.
BNZ currency strategist Sue Trinh said the kiwi flitted over the US73c mark in early trade and after comments today by Reserve Bank governor Alan Bollard.
He restated his view that more monetary tightening may be needed, which would mean lifting the official cash rate above its current 6.75 per cent. He said a review of economic data was underway.
Ms Trinh said the market was initially excited by Dr Bollard's comments, but the kiwi's gains over the US73c mark were short-lived.
"It's now trading around that very familiar US72.80c area," she told NZPA today.
At market's close, the kiwi was fetching 0.5677 euro (0.5673), A93.74c (A93.55c) 76.70 yen (76.77), 38.50 British pence (38.26) and 0.8750 Swiss francs (0.8725).
Tomorrow, the Reserve Bank of Australia (RBA) makes a call on its benchmark interest rate, currently at 5.50 per cent, but market watchers say a move is unlikely.
That and an RBA monetary policy statement later this week could see the kiwi test A94c in coming sessions.
Meanwhile the United States dollar rose modestly overnight ahead of an expected interest rate hike tonight when the US Federal Reserve meets.
The Fed is widely expected to raise interest rates for the eighth consecutive time to 3 per cent, widening the difference with the euro zone's and Japan's interest rate.
"That (the Fed's meeting) is the big event risk for the kiwi... clearly the market is lying in wait for that," Ms Trinh said.
This week, the Japanese market was closed for that country's Golden Week, a string of national holidays in late April and early May, while Britain was out for the May Bank holiday.
The euro was fetching US$1.2832 (US$1.2854) while the greenback was buying 105.28 yen (105.27) and the Australian dollar was at US77.71c (US77.95c).
The trade-weighted index was at 71.23 (71.20) and the monetary conditions index was at plus 1112 (1107).
On the money markets, the 90-day bank bill yields were at 7.05 per cent (7.03), July 2009 bonds were at 5.94 (5.95) and April 2015s were at 5.84 per cent (5.86).
- NZPA
<EM>Currency:</EM> NZ dollar’s sortie above US73c short lived
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