The New Zealand dollar surged to its highest level in at least a week against major currencies as stocks in the United States logged their best one-day gain in more than a month.The rise in US equities came after a bullish forecast from financial company
The New Zealand dollar surged to its highest level in at least a week against major currencies as stocks in the United States logged their best one-day gain in more than a month.
The rise in US equities came after a bullish forecast from financial company State Street Corp fuelled optimism about the coming earnings season. European shares reversed early losses in response to the State Street outlook and gained on optimism stress tests planned for banks in the euro zone and other countries might not be as bad as initially feared.
Around 8am today the kiwi was buying US70.44c from US69.18c at 5pm yesterday. The NZ dollar was also up to 0.5571 euro and 61.80 yen at the local open from 0.5493 euro and 60.45 yen.
Westpac said risk appetite had been given some extra help from an upbeat report that US retail sales were growing at their fastest pace in four years according to the International Council of Shopping Centres.
Support also came from news that BP was in talks with sovereign wealth funds about the potential for capital injections.
ANZ said North American buying interests had ensured commodity currencies were on the menu overnight.
Against the Australian dollar the kiwi dropped to A81.36c at 8am from A81.60c at 5pm, while the trade weighted index rose to 66.92 from 66.09.
