The New Zealand dollar strengthened against major currencies, as Federal Reserve Chairman Ben Bernanke allayed fears about the growth outlook in the United States.By 8am today the NZ dollar was buying US71.45c, up from US70.52c at 5pm on Friday. The kiwi
The New Zealand dollar strengthened against major currencies, as Federal Reserve Chairman Ben Bernanke allayed fears about the growth outlook in the United States.
By 8am today the NZ dollar was buying US71.45c, up from US70.52c at 5pm on Friday. The kiwi also climbed to 0.5594 euro from 0.5541 and to 61.02 yen from 59.73.
BNZ markets strategist Mike Jones said market sentiment brightened noticeably after Mr Bernanke said the Fed stood ready to provide additional monetary accommodation should the US outlook deteriorate further.
In currency markets, investors trimmed positions in safe haven currencies such as the Swiss franc and yen, in favour of the Australian, New Zealand and Canadian dollars.
Investors were trying to decide whether the US economy was heading for a double-dip recession, and whether the sharp slowing in the US economy would result in a deep global slump, Mr Jones said.
The heightened uncertainty was tending to keep the NZ dollar trading choppily within familiar ranges against the US currency.
The kiwi fell against the Australian dollar to A79.11c at 8am today from A79.45c at 5pm on Friday.
ANZ bank said most investors understood that the election issues across the Tasman would eventually be solved without much of a dent on the economic scene in Australia. Based on fundamentals the NZ dollar cross with the aussie should revisit A78c territory in the short term.
The trade weighted index was 66.73 at 8am today from 66.13 at 5pm on Friday.
