The New Zealand dollar continues to be trapped in a narrow range as the world waits to see whether the United States manages to avert defaulting on its debt.
Bank of New Zealand foreign exchange strategist Mike Jones said investors were taking a cautious approach ahead of the looming deadline.
"Overall, the market is relatively optimistic that we'll get some sort of compromise. We haven't really seen any jump up in volatility or risk aversion that you'd expect to see if investors were really panicking," Mr Jones said.
"We have seen that before. Equity markets, as well, are treading water and have been a little bit softer but there really isn't any great sense of panic."
Just after 5pm, the New Zealand dollar was buying: 83.29 US cents, at 87.98 Australian cents, 52.11 pence, 0.6142 euro and 81.87 yen.
Sharemarket becalmed
The sharemarket is also becalmed, with the NZX Top 50 Index falling 7 points to 4734.
Forsyth Barr investment adviser Aaron Raitt said all eyes in the stock market remained fixed on Washington, although a couple of stocks stood out today.
"Starting from the negative side and certainly finishing with the positive, we've seen Diligent down again, not only still grappling with restating its books, now news that its third sales update shows a slowdown in new customers," Mr Raitt said.
"However, bucking the trend, Xero just defying gravity, breaking into new highs after raising $180 million for global growth."
Diligent shares fell 75 cents, or more than 15%, to $4.12. The shares have dropped from $8.20 in June. On Friday, the software company said new client agreements fell for a fifth successive quarter.
Xero shares rose as high as $19.90 before closing at $19.70, up $1.75, after the accounting software company successfully sold nearly 10 million new shares at $18.15 per share. The latest capital raising will take Xero's cash on hand to more than $230 million.
