Dollar closes in on US69c

The New Zealand dollar huffed and puffed but did not break through the US69c level today but it continued to exhibit strength on key cross rates.

By 5pm the NZ dollar was at US68.65c from US67.92c yesterday.

For the third time this week it was briefly above US68.90c but was unable to push on to top US69c, a level untouched since last September.

ANZ bank said the overnight trading was "crazy".

With no real drivers, currency markets sprang to life, with the euro rising more than a full cent against the greenback in the space of a few minutes. The British pound, and Australian and NZ dollars joined in and spiked sharply higher, ANZ said.

The moves seemed to have all the hallmarks of a lack of liquidity and a squeeze higher as stop losses were triggered.

ANZ chief foreign exchange dealer Murray Hindley said the currency spent most of the domestic session around US68.70c to US68.80c and trading was quiet.

He said there were options protecting US69c, which roll off soon.

The NZ dollar has lifted above 42 pence, the highest level in 12 years, and was 42.14p at 5pm.

Against the euro the NZ dollar was 0.4780 at 5pm from 0.4766 at the same time yesterday. It gained to 64.30 yen from 63.65 yesterday.

The NZ dollar was A81.82c from A81.99c yesterday, and the trade weighted index rose to 63.66 from 63.30 yesterday.

Reuters currency rates:

NZ dlr/US dlr US68.65c US67.92c

NZ dlr/Aust dlr A81.82c A81.99c

NZ dlr/euro 0.4780 0.4766

NZ dlr/yen 64.30 63.65

NZ dlr/stg 42.14 41.85

NZ TWI 63.66 63.30

Aust dlr/US dlr 83.86 82.80

Euro/US dlr 1.4358 1.4249

US dlr/yen 93.68 93.72

- NZPA