The New Zealand dollar rose against most of its trading peers after weaker economic data in the eurozone and glimmers of hope in stalled Washington talks over the fiscal cliff, which helped lift equities.
The kiwi dollar rose to 82.55 US cents from 82.48 cents at 5pm in Wellington yesterday. The trade-weighted index rose to 73.66 from 73.52.
The Reserve Bank kept the official cash rate at a record low 2.5% today.
The Dow Jones Industrial Average climbed about 0.9%, recovering from an earlier decline as Washington stayed in focus.
US President Barack Obama said at a quarterly meeting of the Business Roundtable in Washington that an agreement on budget negotiations could be reached in a week if the Republicans ceded ground on tax increases for the wealthiest Americans.
Meanwhile, a gauge of services industries in the US rose faster than expected last month.
The kiwi rose to 68 yen from 67.80 yen on continued speculation a change of government in Japan this month would herald more aggressive efforts to weaken the currency.
The local currency gained to 78.90 Australian cents from 78.71 cents. It rose to 63.08 euro cents from 62.90 cents after Spain sold fewer bonds than it had targeted and a combined eurozone index of manufacturing and services remained in contraction.
The kiwi rose to 51.25 British pence from 51.19 pence.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- John Key: I won't take a traditional role after being PM
- OECD blames stalled world growth on central bank 'distortions'
- Bankruptcy for Bryers’ former Aussie boss
- Warehouse lifts staff entitlements provision 37% with holiday backpay looming
- Affco tried to gag union badmouthing Talleys as condition of meat contract talks
Most listened to
- Knewe Biosystems founder Dr Graeme Coles discusses the future of his product
- Media Snapchat: NBR’s Nick Grant ponders the Human Rights Commission’s role in RHOAKL racism row
- Craigs' Mark Lister on good equities returns for the September quarter to date
- 'It had become far too complicated so we threw it all out the window' – Jane Wrightson on NZOA's new funding model
- Matthew Hooton's picks for Key's next cabinet