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NZ Dollar Rises Further Against Greenback

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, June 3 NZPA - The New Zealand dollar reached its highest level against the greenback in almost eight months early today after a bumpy night.

The kiwi peaked around US65.95c about 5.30am, after dropping below US64.50c briefly yesterday evening. By 8am today the NZ dollar was buying US65.75c.

Safe haven demand for the United States currency weakened further overnight as upbeat US housing data reinforced optimism about the health of the global economy.

ANZ Bank said a relatively small dip in early European trading brought forth further demand for the NZ dollar against the backdrop of US dollar weakness.

BNZ Capital currency strategist Danica Hampton said the NZ dollar had run with the broader market momentum because of the backdrop of a sound economy, banking system and official policy moves.

In a short amount of time New Zealand's trade weighted index had moved back towards its long term average -- having climbed 4 percent last week and 9 percent in the past month, Ms Hampton said.

The trade weighted index was at 61.38 around 8am today from 60.95 at 5pm yesterday.

Despite its strong overnight performance, the NZ dollar failed to regain the multi-month highs reached early yesterday against the European and Japanese currencies.

By 8am the kiwi was at 62.81 yen from 62.50 at 5pm, and was up to 0.4591 euro from 0.4574. Against the Australian dollar the kiwi was little changed at A80.05c by the local open.

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