KEY POINTS:
The rise of the New Zealand dollar against the greenback continued overnight, with the kiwi getting to a new 23-year post-float high of US82.13c around 10pm.
That was around a third of a cent above the previous high hit in late-morning trading yesterday. Altitude sickness set in and by 8.30am today the kiwi was back down to 81.49c, barely changed from its position at 5pm yesterday.
The NZ dollar's rise from just above US79c a week ago, comes against the backdrop of an ever-weakening greenback, which also saw the Australian dollar pushing up to a 24-year peak of US94.17c.
Overnight the US dollar slid to an all-time low versus a basket of currencies on expectations the Federal Reserve will cut interest rates aggressively, making US assets less attractive than those of countries with higher interest rates.
Adding to pressure on the US currency, a report showed new US single-family home sales fell in January to the lowest rate in nearly 13 years and housing inventories swelled, despite falling prices.
Today the ANZ Bank pointed out that while the NZ dollar was up against its US counterpart, the trade weighted index had slipped.
The easing in the TWI was largely due to a National Bank business survey yesterday showing business confidence deteriorating to a two-year low. The survey result raised concerns with offshore investors.
The NZ dollar fell overnight against other major currencies.
At 8.30am today it was buying A86.77c, 0.5394 euro and 86.70 yen. That was down from A87.18c, 0.5430 euro and 87.18 yen at 5pm yesterday. The trade weighted index eased to 73.62 from 73.85.
ANZ said the kiwi had weakened against the aussie with the National Bank's survey showing cracks in this country's economic foundations, and it expected that trend to continue.
- NZPA
