Dollar up on global sentiment

The New Zealand dollar was higher today against a back drop of rising equity markets and optimism about the US economy.

By 5pm today the NZ dollar was US68.48c from US68.35c at 8am and US67.17c at 5pm on Friday.

Westpac said previous strong resistance at US66c had now become strong support and this week's target on the upside is US70c.

BNZ Capital senior strategist Danica Hampton said global sentiment improved on Friday night.

United States data surprised on the upside and Federal Reserve chairman Ben Bernanke had said the prospects for a return to growth in the near term appeared good for both the US and global economies.

Equity markets rebounded strongly and against the backdrop of firmer global equities and revived risk appetite, growth sensitive currencies such as the NZ dollar pushed higher against safe-haven currencies such as the greenback and yen, Ms Hampton said.

The NZ dollar lifted to its highest level in a week against the Japanese currency, getting to around 64.70 yen early Saturday, from 62.82 at Friday's local close. By the local close today the NZ dollar was at 64.89 yen.

The NZ dollar was A81.65c at 5pm from A81.70c on Friday and 0.4777 euro from 0.4727.

The trade weighted index rose to 63.58 from 62.67 on Friday.

Currency rates:

NZ dlr/US dlr US68.48c US 67.17c

NZ dlr/Aust dlr A81.65c A81.70c

NZ dlr/euro 0.4777 0.4727

NZ dlr/yen 64.89 62.82

NZ dlr/stg 41.45 40.89

NZ TWI 63.58 62.67

Aust dlr/US dlr 83.85 82.16

Euro/US dlr 1.4333 1.4210

US dlr/yen 94.80 93.52

- NZPA