Some exporters are having a tough time coping with the high kiwi dollar. Photo / Supplied
Some exporters are having a tough time coping with the high kiwi dollar. Photo / Supplied
The New Zealand dollar rose to a fresh post float high of 85.86 US cents after France and Germany announced they had reached an agreement on a Greek debt restructuring deal.
The kiwi, which recently traded at 85.84 US cents, jumped to its highest level in 26 years, tracking gainsin the euro on news of the deal. No details on the agreement were available. It will now be put to euro zone president Herman van Rompuy tomorrow for discussion and approval.
The European single currency was last at US$142.66, having peaked at US$142.69 this morning, from US$142.08 before the announcement.
"The market is taking it as a positive, that they do have a proper concrete bailout for Greece even if the detail is missing at this stage," said Mike Burrowes, a market strategist at Bank of New Zealand. "There's definitely a possibility we could head through 86 US cents today, and keep going from there."
The currency could gain further momentum if US officials reach an agreement on lifting the US14.29 trillion debt ceiling ahead of the Aug. 2 deadline.
Overnight news reports claimed the White House was prepared to support a short-term increase in the US borrowing limit if it forms part of a broader deficit reduction deal.
