Kiwi tops US73.50c overnight

Tuesday 22nd March 2011

The New Zealand dollar pushed above US73.50c for the first time since last Thursday, when a broad surge in the yen resulted in the kiwi plunging amid nuclear crisis in Japan following a catastrophic earthquake and tsunami.

Having dropped to around US71.15c on Thursday morning the kiwi rose to US73.60c overnight, climbing from US73.30c at 5pm yesterday. By 8am today the kiwi was buying US73.46c.

BNZ currency strategist Mike Jones said the NZ dollar had spent most of the night drifting higher against the greenback, as risk aversion continued to ease from last week's highs.

Easing fears about a sharp slowing in Asian growth had also bolstered Australian cash rate expectations yesterday, with the market all but ruling out the possibility the Reserve Bank of Australia would cut rates.

That helped lift the Australian dollar back above parity against the US currency, dragging the NZ dollar up on its coat tails, Jones said.

The kiwi fell to A73.04c against the aussie at 8am from A73.27c at 5pm, and eased to 0.5164 euro from 0.5173, while lifting to 59.56 yen from 59.35. The trade weighted index was barely changed at 64.36 at 8am.

NZPA

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