Wellington, July 17 NZPA - The negative impact on the New Zealand dollar of a surprise announcement by ratings agency Fitch yesterday was erased overnight and it was trading up against most currencies this morning.

The kiwi was trading at US64.83c at 8am today, from US63.90c at 5pm yesterday.

The Fitch announcement, changing the outlook on New Zealand's credit rating from "stable" to "negative", served as a reminder of some broad imbalances in the economy, BNZ strategist Danica Hampton said.

"The risk is very real that if we do get some growth emerging in the next year or two, the composition might be all round the wrong way, and this is where the currency is quite a big issue."

If global good news continued, then the NZ dollar was likely to keep edging up -- shutting exports out of any economic recovery, she said.

The NZ dollar was trading at A80.46c at 8am, up from yesterday's A80.10c, a lso rising against the euro to 0.4582 from 0.4545 and to 60.81 yen, from 59.97. The kiwi also rose against the pound, to 39.43p from 39.02p yesterday and against the Australian dollar, at A80.46c from A80.10c yesterday. The trade weighted index reached 60.83, from 60.21.

The US dollar touched a six-week low against a basket of major currencies on Thursday on strong earnings from JPMorgan, but it came off lows as weak manufacturing data and anxiety about other US bank earnings kept a safe-haven bid alive.

Investors initially sold the dollar for higher-yielding currencies and assets after better-than-expected earnings from JPMorgan Chase boosted hopes for a US recovery, diminishing the greenback's safe-haven appeal.