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NZ dollar in narrow range vs greenback after new high


Monday 25th July 2011

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The New Zealand dollar pushed up to a new post-float high against the greenback around US86.70c on Friday night before slipping into a narrow range between US86.20c and US86.55c.

ANZ said the NZ dollar had continued to be well supported, among global uncertainty, with demand evident on dips.

Markets are continuing to wait for a resolution to the political struggle in Washington over the United States' debt ceiling as an August 2 deadline looms. The drawn-out battle has dented risk appetite in recent weeks and led ratings agencies to warn of a potential downgrade.

Most investors expect some sort of deal to avoid a default, and US dollar investors have so far been complacent as the greenback rose against the euro and a basket of currencies at the end of last week.

Fears of a full-blown euro zone debt crisis have subsided for now after the announcement of a second bailout for Greece.

The NZ dollar was buying 0.6001 euro at 8am today from 0.5987 at 5pm on Friday, and was largely stuck in a band against the Australian dollar between A79.75c and A79.45c.

The kiwi dropped to 67.49 yen from 67.74, while the trade weighted index was 73.82 at 8am today from 73.74 at 5pm on Friday.

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