Kiwi breaks through 86USc
Kiwi hits fresh high overnight.
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The New Zealand dollar marked a new post-float high at 86.38USc overnight.
According to Reuters data, the new 26-year high was reached before the kiwi dropped back to 86.31USc.
The dollar rose as European leaders struck agreement on a new bailout package for Greece, involving lowering interest on debt to 3.5% for Portugal, Ireland and Greece and doubling the repayment period to at least 15 years.
Economists have picked the long-term value of the New Zealand dollar won't be reducing in value any time soon, with demand for New Zealand products from Asia likely to keep it high.
“It is likely that the New Zealand dollar will average closer to 75USc going forward rather than the 57USc average for the first 20 years of its float,” said ASB Bank chief economist Nick Tuffley.
NBR staff
Fri, 22 Jul 2011
Fri, 22 Jul 2011
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Kiwi breaks through 86USc
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