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NZ Dollar Climbs To New 10-Week High Vs Greenback

Fuseworks Media
Fuseworks Media

Wellington, March 27 NZPA - The New Zealand dollar climbed to its highest level against the greenback in more than 10 weeks as government debt yields surged in a sign investors are reining in expectations for lower rates.

According to Reuters data the kiwi peaked at US58.01c around 10pm and by 8am had eased to US57.49c, similar to its level at 5pm yesterday.

ANZ bank said increased risk appetites and higher yield advantage had pushed the NZ dollar higher.

It would take "very poor" gross domestic product data today, due at 10.45am, to stem the bidding for the kiwi, ANZ said.

BNZ Capital currency strategist Danica Hampton said the NZ dollar had attracted the attention of both foreign exchange traders as well as Asian investors hungry for yield and a home for surplus cash funds.

Japanese demand was noted during a busy day on most NZ dollar desks, she said.

Also gathering plenty of attention was an extension of recent gains in the kiwi against the Australian dollar.

The kiwi peaked at a 10-week high around A82.65c last night, and by the local open was down to A82.01c, below the A82.30c at 5pm yesterday.

The NZ dollar topped out overnight near 57.10 yen, a 4-1/2-month high against the Japanese currency. By 8am the kiwi was down to 56.57 yen, up from 56.24 yen at yesterday's local close.

Against the European currency the kiwi was a little higher at 0.4254 euro from 0.4240. The trade weighted index was 57.10 at 8am from 57.07 at 5pm.

NZPA WGT Reuters mjd gt

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