Kiwi dollar soars on US debt deadlock

Kiwi dollar hits new high of 87USc.

The Kiwi dollar has risen, again, to a new post-float high as the US lawmakers are in deadlock over plans to raise the US$14.3 trillion debt limit.

The New Zealand dollar reached a new high today at US87 cents today according to Thompson Reuters data – the highest since it was allowed to float freely in 1985.

The hike followed US President Obama’s address to the nation, in which he warned burgeoning US debt could cause serious damage to the world’s largest economy if the Congress can’t agree on raising the debt ceiling.

Negotiations in Washington today failed to reach a compromise.