Kiwi down to US but high against euro

05:39, Jul 20 2012

The New Zealand dollar fell ten basis points against the greenback today after a day of consolidation. It had hit a new high against the euro earlier in the day at 65.39 euro cents, where it remained at 5pm.The rise came after German's finance minister commented fears about the indebted Spanish banks impacting the euro zone.

The kiwi recently traded at US80.18c, down from US80.28c in the morning. On the Trade Weighted Index against major trading partners' currencies it was at 72.50, up from 72.36.

"The kiwi has just consolidated on the day but it has been a little bit weaker if anything and with no particular reason. It has come a long way but there was just a bit of profit taking at the end of the week. It is also seeing a bit of profit taking on aussie and euro," ASB Institutional head of institutional FX sales Tim Kelleher.

"We think the kiwi will be well sought-after on dips and at this stage nothing is likely to change, there should be good buying back on US79.75c to US80.00c.

"On the crosses the kiwi was at 77.04 Australian cents, up from A76.99c earlier which was a two month low. It was at 51.04 pence, down from 51.07 pence in the morning. It was at 63.05 Japanese yen, down from 63.15 yen earlier.

Kelleher expected it to trade between US79.75c and US80.50c overnight.