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NZ Dollar At 11-Week High Vs Greenback

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 3 NZPA - The New Zealand dollar reached its highest level against the greenback in more than 11 weeks as investors became more daring following several pieces of good news.

The kiwi peaked at US58.40c around 5.30am then fell away to US57.81c by 8am, up from US56.80c at 5pm yesterday.

The US dollar was broadly lower as gains in Wall Street stocks eroded the greenback's safe-haven appeal. The improvement in investors' risk appetite sparked a rally in higher-yielding, commodity currencies such as the Australian and NZ dollars.

US stocks jumped after world leaders at the Group of 20 summit agreed to pump an additional trillion US dollars into the global economy to fight the financial crisis and on US accounting rule changes aimed at giving banks flexibility when dealing with toxic assets.

BNZ Capital currency strategist Danica Hampton also pointed to data out of China, signalling an expansion in manufacturing activity in that country for the first time in six months, as boosting the NZ dollar against the greenback.

The kiwi rose strongly against the Japanese currency and by the local open was at 57.59 yen from 56.05 yen at 5pm.

The NZ dollar was up to 0.4299 euro at 8am from 0.4278 at the local close, but was barely changed against the Australian dollar at A80.77c. The trade weighted index was up to 57.32 at 8am from 56.69 at 5pm.

The euro rose strongly against the greenback and yen after the European Central Bank cut lending rates by just 25 basis points to 1.25 percent, confounding expectations for a deeper cut to 1 percent.

NZPA WGT Reuters mjd nb

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