The dollar closed above 40USc yesterday as the US presidential race continued to be too close to call.
The kiwi ended the day firm at 40.04USc, up from Tuesday's close of 39.83USc.
Jon Clarke of Greenwich Financial Services said the main currency features of the day were the Reserve Bank of Australia's decision to leave the overnight cash rate unchanged, and the neck and neck American presidential election.
"With the (RBA) intervention in the currency market recently they had obviously been concerned about the level of the Aussie dollar," he said.
"Surprisingly the decision not to raise rates saw the aussie pick up and the kiwi pick up."
As well, he said, the US election had clearly shown the market's attitude.
Commentators have said if George W. Bush becomes president, his policies would support US equity markets which have been a driving force behind the strength of the American dollar.
Al Gore, on the other hand, appeared to be more sympathetic towards the euro and other global currencies.
"If we find we have a Bush victory, then we may well find the kiwi back in 39USc territory, and if we have a Gore victory we may well find it pushing up towards 41USc," Mr Clarke said.
- NZPA
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