THE dollar closed higher as investors sought risk assets on improved sentiment after equities gained ground ahead of next week's Reserve Bank interest rate decision.
At 5pm (AEST), the dollar was trading at $US0.9316/19, up 0.49 per cent from yesterday's close of $US0.9260/62.
Since 7am (AEST), the local unit has traded between $US0.9270 and $US0.9318.
The futures market has priced in a 50-50 chance of a May interest rate increase when the central bank's board meets on Tuesday.
Commonwealth Bank currency strategist Joseph Capurso said the trade in the local unit had been "excruciatingly slow" today.
"It's traded very closely in a tight range around 93 US cents all day," Mr Capurso said.
"It got a bit of a kick as London opened but it has been a pretty quiet day."
The Australian share market closed moderately higher, with a market-pleasing profit from Macquarie Group boosting the financial sector and a higher oil price underpinning resource stocks.
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Investor demand for growth assets rose in morning trade as European and German officials overnight tried to restore confidence in markets, saying approval on a significant aid package for Greece was close.
Talks between the European Union, European Central Bank and International Monetary Fund were expected to finish in the coming days.
"It could be as soon as this weekend that they come up with a plan for Greece," Mr Capurso said.
"They've got to come up with something before may 19, so time's ticking."
He said offshore trade was likely to be quiet ahead of the release of US GDP and manufacturing data late today.
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