The New Zealand dollar climbed overnight, buoyed by overseas stock market rallies, while the currency market here awaited direction on interest rates from the Reserve Bank of New Zealand (RBNZ) this morning.The kiwi was at US66.58c at 8am, compared with U
The New Zealand dollar climbed overnight, buoyed by overseas stock market rallies, while the currency market here awaited direction on interest rates from the Reserve Bank of New Zealand (RBNZ) this morning.
The kiwi was at US66.58c at 8am, compared with US66.15c at 5pm yesterday after peaking around US67.50c overnight.
ANZ senior markets economist Khoon Goh said in a commentary that the kiwi was boosted overnight as both United States and European stock markets continued to regain lost ground due to further optimistic comments from Federal Reserve chairman Ben Bernanke.
Mr Bernanke said if markets continued to stabilise the effects of the European crisis on US economic growth would likely be modest.
However, gains on Wall Street were pared back sharply in late trading, weighed by declines in financial and utility shares.
Mr Goh said continued gyrations on Wall St provided the initial support to the NZ dollar leading into the RBNZ statement this morning.
"Market positioning should see the NZD meet early resistance on the topside with a fresh direction provided after the announcement," he said.
The NZ dollar firmed against the euro to 0.5555 at 8am, from 0.5542 5pm and against the yen, at 60.64 from 60.50.
But it eased against the Australian dollar to A80.52c from A80.57c yesterday.
The trade weighted index rose to 65.40 at 8am from 65.28 at 5pm yesterday.
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