The New Zealand dollar surged against the greenback to within a whisker of US75c as a surprise easing by the Bank of Japan rekindled risk appetite and prompted buying of currencies and assets with higher returns.Further boosting risk appetite was a report
The New Zealand dollar surged against the greenback to within a whisker of US75c as a surprise easing by the Bank of Japan rekindled risk appetite and prompted buying of currencies and assets with higher returns.
Further boosting risk appetite was a report which showed the United States services sector expanded more than expected in September.
The kiwi was buying US74.88c at 8am from US73.93c at 5pm, peaking around 7am at US74.97c, according to Reuters data.
The Bank of Japan cut its overnight rate target to 0-0.1 percent from 0.1 percent, and the US dollar fell to an eight-month low against the euro.
"The BoJ took further steps to provide stimulus to the economy and that has given a boost to risk appetite. As a result, we have seen the (US) dollar come off a lot against the euro," said Eric Viloria, senior currency strategist at Forex.com in New York.
Japan's action also spurred a rally in US stocks and commodities.
After leaping against the Australian dollar yesterday afternoon, following the Reserve Bank of Australia's unexpected move to kept interest rates on hold, the NZ dollar climbed further overnight to a fortnight high around A77.50c.
The kiwi then eased to be at A77.09c at 8am, similar to its level at 5pm yesterday.
ANZ said today could be significant for the NZ dollar if it were able to break through the key US75c level.
Yesterday's decision to leave the Australian cash rate unmoved put the NZ dollar back into focus. Despite a 1.3 percent decline in trade weighted index prices at Fonterra's overnight auction, the NZ dollar was able to extend itself, ANZ said.
The NZ dollar may yet be ready to fly into the last quarter of 2010, although significant hurdles remained.
The kiwi rose to 62.30 yen at 8am from 61.71 at 5pm, while easing to 0.5407 euro from 0.5417. The trade weighted index lifted to 66.94 at 8am from 66.56.
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