The New Zealand dollar rose overnight as fears over Ireland's debt crisis eased with speculation financial help was on the way.By 8am the NZ dollar was at US77.70c from US77.39c yesterday at 5pm and US77.06c yesterday morning.Westpac senior market strateg
The New Zealand dollar rose overnight as fears over Ireland's debt crisis eased with speculation financial help was on the way.
By 8am the NZ dollar was at US77.70c from US77.39c yesterday at 5pm and US77.06c yesterday morning.
Westpac senior market strategist Imre Speizer said the US dollar weakened against all major currencies except the yen as sentiment improved last night.
"Contributing events included a strong US business survey, a large IPO (initial public offering), and developments in Ireland's fiscal story," he said.
"Irish central bank head Patrick Honohan said he expected Ireland to tap an EU/IMF loan worth tens of billions at an interest rate of 5 percent."
The euro was stronger against the greenback, at US1.3622 at 8am today from US1.3584 at 5pm yesterday.
It weakened against the NZ dollar however. The kiwi was buying 0.5704 euro this morning from 0.5696 yesterday afternoon.
Locally, the producers' price index (PPI) released yesterday also helped the turnaround in recent NZ dollar weakness.
The PPI rose 1.2 percent in the September quarter, which is more than the 0.6 percent expected by the market.
BNZ Research said the PPI gave further evidence inflation is on the rise.
"This affirms our belief that inflation will probably surprise many with its strength over the coming period, which should keep the Reserve Bank very much on its toes -- even though the near-term growth picture does not appear that compelling," it said.
The NZ dollar was at 64.90 yen at 8am today from 64.47 yen at 5pm yesterday.
The trade weighted index was 69.56 at 8am from 69.36 at 5pm yesterday.
