* USD slips after rebound, awaits Fed, G-20
* Kiwi rallies on signs of stronger dairy exports
By Rika Otsuka
TOKYO, Sept 22 (Reuters) - The dollar dipped on Tuesday
after rallying broadly in the previous session as traders took
profits on short dollar positions ahead of a Federal Reserve
monetary policy meeting and a Group of 20 summit.
The New Zealand dollar <NZD=D4> surged to a 13-month high
against the dollar and a six-week peak against the yen
<NZDJPY=R> after dairy exporter Fonterra raised its estimated
payout to farmer shareholders, pointing to stronger global
demand and a recovery in dairy prices. []
Fonterra accounts for around 7 percent of the country's
economy.
But activity was subdued in Asia as Japanese financial
markets were closed for a national holiday. Tokyo markets will
resume trading on Thursday.
"Few believe that a trend in the dollar is shifting to
upward even after Monday's rise in the greenback," said Tsutomu
Soma, senior manager of foreign securities at Okasan
Securities.
"Technical factors are moving currency rates at the moment,
with market participants waiting to hear whether the Fed has
something to say about a possible exit from its emergency steps
later this week."
Against a basket of currencies, the dollar <.DXY> was down
0.3 percent at 76.542, but holding well above a one-year low of
76.01 struck on Sept. 17.
The index has shed over 2 percent this month as speculators
dumped the dollar amid rising confidence in a global recovery
and expectations that rates will stay at rock-bottom levels.
The U.S. dollar eased 0.2 percent to 91.75 yen <JPY=> after
posting hefty gains on Monday, when it rose as high as 92.55
yen on trading platform EBS. Upside resistance for the U.S.
dollar is seen around 92.70 yen, according to the Ichimoku
chart.
Traders said dollar offers from Japanese exporters were
lined up above 92 yen, making players careful about buying the
U.S. currency.
KIWI FLIES HIGH
The New Zealand dollar rose as high as $0.7187 on Reuters
trading system. It later slipped back to $0.7175 to stand up
1.5 percent on the day.
Against the Japanese currency, the kiwi rallied 1.4 percent
to 65.89 yen, its strongest since Aug. 10.
The euro <EUR=> edged up 0.2 percent to $1.4715, crawling
towards a one-year peak of $1.4768 hit on EBS last week. The
European single currency fell 0.15 percent on Monday, falling
at one point to around $1.46.
The euro was little changed at 134.98 yen <EURJPY=R>, after
rising 0.6 percent on Monday.
Analysts said major currencies would be subdued in coming
days ahead of the outcome of the G20 meeting and the Federal
Reserve's policy meeting on Tuesday and Wednesday.
[] []
"Persistent consolidation seems to have set in ahead of the
G20 meeting," said Clifford Bennett, chief economist at Kinetic
Securities. "Especially in the currency market there is
increasing fear of some strong dollar statements and/or
political rhetoric about the euro being too strong."
A document outlining the U.S. position ahead of the Sept.
24-25 G20 summit in Pittsburgh said exporters, which include
China, Germany and Japan, should consume more, while debtors
like the United States ought to boost savings. [].
Analysts said the U.S. plan to start rebalancing the global
economy was unlikely without further depreciation in the
dollar.
"This macro backdrop smacks of a new policy that a strong
dollar is no longer in the nation's interest," said David Watt
senior currency strategist at RBC Capital.
"(President) Obama basically lays out the case that the U.S
is no longer capable of carrying the burden of global growth,"
he added.
The Fed is expected to hold rates steady but markets will
be interested to know when its ultra-loose policy will start to
be tightened.
(Additional reporting by Anirban Nag in Sydney; Editing by
Jeremy Laurence)
