Kiwi dollar may remain vulnerable

The New Zealand dollar remained in relatively narrow ranges yesterday as investors digest the US bank rescue package. The kiwi may remain vulnerable as many in the market are of the view that the rescue plan is only a band aid solution and will not help solve the banking crisis. Continuing concerns over global financial markets is likely to see investors remain relatively risk averse. Until retail sales figures are released on Friday the kiwi’s direction will continue to be driven by broader market movements.