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Kiwi Still Flying High Against US Dollar

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Aug 4 NZPA - The New Zealand dollar stayed up around its 10-month high against the US greenback today and it could be headed higher.

At 5pm today the NZ dollar was worth US66.77 cents, up from US66.30c yesterday.

"Once again with the stronger US equity markets the commodity currencies have continued to push higher," said ANZ chief foreign exchange dealer Murray Hindley.

The kiwi briefly went through US67c but backed off, he said.

It reached a high of US67.13c about 1.30pm before sliding to the day's low of US66.58c just after 4.30pm, when the Reserve Bank of Australia announced it would keep the benchmark interest rate at 3 percent.

The kiwi tracked downwards during the day against the Australian but recovered from a dip to A78.84c immediately after the RBA announcement to finish at A79.17c at 5pm, down from A79.08c at the local close yesterday.

Meanwhile, Westpac's weekly foreign exchange outlook said an upside break last night argued for higher in the coming weeks.

"Our immediate target is 0.67 (against the US dollar), followed by 0.69. Beyond that, if the upward trend remains intact, 0.73 beckons."

Only a break below US$0.66 would negate the bullish view, the bank said.

The NZ dollar was also strong against the yen today. At 5pm it was at 63.59 yen from 62.75 yesterday. The kiwi dropped to 0.4640 euro from 0.4650 yesterday.

The trade weighted index rose to 61.78 at 8am from 61.59 yesterday.

Meanwhile, the US dollar stayed near its lowest level this year against a basket of currencies, as bullish global stock markets and upbeat economic data lifted investor risk appetite, denting the greenback's appeal.

The dollar index, a gauge of the greenback's performance against six other major currencies, was down 0.1 percent to 77.554, from late US trade on Monday. Earlier on Monday it fell as far as 77.451, its lowest since Sept. 29.

The euro was steady at $1.4417, not far from this year's high of $1.4445 hit on trading platform EBS on Monday.

Against the yen, the euro rose 0.1 percent to 137.41 yen after earlier rising as high as 137.70 yen on EBS, its highest since mid-June.

The US dollar fared better against the yen, up 0.1 percent at 95.39 yen.

Sterling rose 0.2 percent to $1.6973 after rising to $1.7005 on the Reuters dealing system, its highest in more than nine months.

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