The New Zealand dollar consolidated at higher levels today after surging above 73USc against the greenback for the first time in more than three months overnight on Friday.The NZ dollar peaked around 73.25USc and by 5pm today was not far from there at US7
The New Zealand dollar consolidated at higher levels today after surging above 73USc against the greenback for the first time in more than three months overnight on Friday.
The NZ dollar peaked around 73.25USc and by 5pm today was not far from there at US72.76c, up from US72.48c at 5pm on Friday.
BNZ strategist Mike Jones said the NZ dollar was the strongest performing currency last week.
Confirmation from the Reserve Bank that interest rates were set to rise "over coming months" had spurred a strong appetite for the NZ dollar, particularly against the low yielding euro and yen.
In the coming week the most important data would be the household labour force survey on Thursday, Mr Jones said.
Westpac said it was increasingly bullish about the NZ dollar after the Reserve Bank took a hawkish stance last week and after the currency broke through the 72USc level.
The Australian dollar rose today on speculation the Reserve Bank of Australia will raise its benchmark interest rate by 25 basis points to 4.5% tomorrow, particularly after Australia's house price index jumped 4.8% in the first quarter.
The NZ dollar managed to hold its own against its Australian counterpart, trading as high as 79.02Ac today before easing to 78.76Ac at 5pm from 77.91Ac at 5pm on Friday.
The NZ dollar reached a 33-month high against the euro at around €0.5512 today, and by 5pm was €0.5502 from €0.5470 at 5pm on Friday.
The euro rallied during the weekend as expectations that Greece would soon receive emergency aid helped calm investors concerned at how Athens will pay its huge debts. The aid plan was confirmed early today (NZT).
From ¥68.14 at 5pm on Friday, the NZ dollar also climbed toward a six-month high at ¥69 yen, and was ¥68.35 at today's local close.
The trade-weighted index was 68.00 at 5pm from the 67.62 at 5pm on Friday.
