THE dollar opened flat today following a subdued offshore session, as Europe's sovereign debt woes once again weigh on market sentiment.
At 7am (AEDT) today, the "Aussie" was trading at US101.38c, up a touch from yesterday's close of US101.32c.
Since 5pm yesterday, the local unit traded between US100.79c and US101.45c.
Bank of New Zealand currency strategist Mike Jones said the US dollar, which has an inverse relationship to the Aussie, firmed after Irish and Portuguese bond yields firmed.
"The Aussie paused for breath overnight after a big week last week," Mr Jones said.
"The US dollar firmed and knocked the Aussie off its highs in renewed fears over the European sovereign debt situation.
"That prompted a small about of risk aversion."
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The interest rate on Portuguese 10-year bonds rose to 6.579 per cent from 6.338 per cent on Friday, a higher interest suggesting investor concern.
The yield on 10-year Irish paper jumped to 7.646 per cent from 7.505 per cent on Friday.
Bond prices and yields move in opposite directions.
In May, worries over the fiscal position of some European nations substantially weakened the Euro dollar against other major currencies, including the Aussie and the US dollars.
With no market-moving data due today, Mr Jones said he expected the local unit to trade to trade within current ranges.
Dollar opens higher, trades above US97cStocks retreat; Dow off by 37
