The New Zealand dollar pushed to a six-month high against the greenback around US73.50c early today as investors became less risk averse.Data on home sales in the United States boosted investor sentiment, with new home sales rising nearly 24 percent in Ju
The New Zealand dollar pushed to a six-month high against the greenback around US73.50c early today as investors became less risk averse.
Data on home sales in the United States boosted investor sentiment, with new home sales rising nearly 24 percent in June from a month earlier to a seasonally adjusted annual sales pace of 330,000.
That was still the second-weakest month on record, with May's number revised downward to a rate of 267,000, the slowest pace on records dating back to 1963.
Markets were also continuing to take into account stress test results for 91 European banks, with regulators finding only a handful of banks failed the test, although scepticism of the outcome persisted.
Around 8am today the NZ dollar was buying US73.46c from US72.74c at 5pm yesterday.
BNZ currency strategist Mike Jones said the NZ dollar had been the strongest performing currency during the 24 hours to 8am.
Last night's mood in financial markets was all about accentuating the positives and downplaying the negatives, Mr Jones said.
The generally upbeat mood prompted investors to cut positions in safe haven currencies such as the greenback.
It was that, combined with a scramble by short term speculative accounts to cover short positions in the NZ dollar against the US dollar, that propelled the kiwi above US73c.
The NZ dollar was also up to 0.5651 euro at 8am from 0.5628 at 5pm, and to 63.80 yen from 63.70.
Against the Australian dollar, the kiwi was little changed at A81.33c at the local open, while the trade weighted index rose to 68.44 at 8am from 68.13 at 5pm.
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