Kiwi steadies but stays near highs

RICHARD MEADOWS
Last updated 09:17 18/02/2013

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The New Zealand dollar corrected against the greenback after US equities fell on Friday, but it remains just below an all-time high against a basket of trading partners' currencies.

The kiwi recently traded at US84.38 cents, down from highs beyond US85c on Friday, and held steady on the Trade Weighted Index of major trading partners' currencies at 77.20.

Westpac market strategist Imre Speizer said there had been a round of profit-taking on the kiwi and the Australian dollar after US stocks retreated on Friday.

The kiwi was likely to continue in correction mode today, he said, with little scheduled news to drive trading activity.

"I see this overall as a correction rather than a change of trend," Speizer said.

"Once the correction is complete then we make another leap higher."

The kiwi continued to hover just below an all-time high against a basket of currencies after the world's financial leaders failed to sanction Japan during the weekend's G20 meeting.

Japan was expected to receive a slap on the wrist for its currency devaluation, but instead Tokyo took the signal as a green light to proceed with its controversial monetary policy plans.

On the crosses, the kiwi recently traded at 81.91 Australian cents, 63.20 euro cents, 54.42 pence and 78.88 yen.

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- BusinessDay.co.nz

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