Dollar up on eco recovery news

The New Zealand dollar rose above US73c today on news the recession is over.

Analysts said the data on the economy just keeps getting better. Yesterday there was better-than-expected current account data and an increased payout from dairy co-operative Fonterra.

Today Statistics New Zealand said economic activity expanded 0.1 per cent in the June quarter, following five quarters of contraction.

The NZ dollar rose from US71.90c to US73.15c on the gross domestic product report, but eased back to US72.70c by 5.15pm. The peak was the highest since August 2008.

"I think that we have had a train of positive news," BNZ Capital senior strategist Danica Hampton said.

"It has just hammered home this idea that perhaps the New Zealand economy is in okay shape."

Investors are now waiting for the outcome of a Federal Reserve monetary policy meeting in the United States and are also mindful that the NZ dollar has come a long way in a short time.

"If people are long kiwi there may be a little bit of profit-taking. But people are excited about the prospects for growth in New Zealand and any dips will probably find buyers," she said.

The NZ dollar was buying 0.4908 euro by 5.15pm, from 0.4869 at 5pm yesterday.

Against the Australian dollar, the NZ dollar was A82.90c at 5.15pm from A82.41c yesterday.

The NZ dollar was again at 12-1/2-year highs against sterling was 44.32p at 5.15pm from 44.13p yesterday. The trade weighted index was 65.88 from 65.35 at 5pm yesterday.

Currency rates:

5.15pm today 5pm yesterday

NZ dlr/US dlr US72.70c US71.65c

NZ dlr/Aust dlr A82.90c A82.41c

NZ dlr/euro 0.4908 0.4869

NZ dlr/yen 65.98 65.71

NZ dlr/stg 44.32 44.13

NZ TWI 65.88 65.35

Aust dlr/US dlr 87.70c 86.90c

Euro/US dlr 1.4818 1.4714

US dlr/yen 90.70 91.71

- NZPA