The New Zealand dollar marched upwards against the greenback as it recovered from a dip to its lowest level in almost a week.By 8am today, the kiwi was buying US75.93c after briefly dropping to US75c around 9pm, having fallen from a 27-month high around U
The New Zealand dollar marched upwards against the greenback as it recovered from a dip to its lowest level in almost a week.
By 8am today, the kiwi was buying US75.93c after briefly dropping to US75c around 9pm, having fallen from a 27-month high around US76.40c last Thursday.
BNZ currency strategist Mike Jones said the initial fall in the NZ dollar yesterday came as the US dollar started the week on the front foot.
US Federal Reserve chairman Ben Bernanke had failed to deliver the "all guns blazing" approach to quantitative easing markets had hoped for at the end of last week, encouraging a mild bout of profit-taking on short US dollar positions.
But the dip by the kiwi against the greenback proved short-lived, as sentiment towards the US dollar soured overnight.
US industrial production fell 0.2 percent in September, while Atlanta Federal Reserve president Dennis Lockhart said he was leaning in favour of additional monetary stimulus.
As the US dollar reversed its earlier gains, the NZ dollar was catapulted back above US75.70c amid solid buying from leveraged and model accounts, Mr Jones said.
Lofty prices for New Zealand commodities and buoyant risk appetite should ensure buyers would be found on dips in the NZ dollar.
Around 8am the NZ dollar was also at 0.5425 euro from 0.5412 at 5pm, and was up to 61.65 yen from 61.11. The kiwi was slightly higher against the Australian dollar at A76.42c. The trade weighted index lifted to 67.10 at 8am from 66.75 at 5pm.
