The kiwi rose against the greenback today, in muted trading ahead of the Federal Open Markets Committee (FOMC) meeting on Thursday where the US Federal Reserve will reveal stimulus levels.
The kiwi recently traded at US80.96c, up from US80.86c in the morning. On the Trade Weighted Index against major trading partners' currencies it was at 72.40, up from 72.28 in the morning.
Westpac market strategist Imre Speizer said trading of the kiwi had been dull.
"Markets were a little bit weaker but not by much, they're just cautious ahead of the FOMC on Thursday which is the big event this week," Speizer said.
"Until then I think we will be fairly subdued. The main news on Europe's front will be the German court's ruling on the legality of the bailout fund. If they give it the green light, we could see an uptick in the kiwi."
On the crosses the kiwi recently traded at 78.31 Australian cents, up from AU78.24c earlier. It was at 63.27 Japanese yen, down from 63.31 yen earlier. It rose to 63.40 euro cents, up from 63.33 euro cents in the morning. Against the British pound it was at 50.57 pence, up slightly from 50.56 pence in the morning.
Speizer said the kiwi was likely to trade up to US81.30c.
- © Fairfax NZ News