KEY POINTS:
The New Zealand dollar firmed today against a generally weaker greenback.
The US dollar fell after a report about record euro-zone inflation that supported expectations the European Central Bank will hike interest rates next month.
The dollar's slide was compounded by an unexpectedly large contraction in New York state manufacturing in May and a surge in oil prices to near US$140 per barrel.
By 5pm, the kiwi was buying US75.61c from US75.06c at 5pm yesterday.
Bank of New Zealand currency strategist Danica Hampton said the NZ dollar was "dragged" higher overnight against the US currency by the greenback's general weakness and strong gains by the euro against the greenback.
After falling for three consecutive weeks, the NZ dollar rate against the US dollar was arguably primed for a bout of profit-taking and the generally weaker greenback provided the catalyst, she said.
The move up did not have much momentum, she said.
Against the yen, the kiwi got to a 10-day high overnight around 81.55 from 81.24 at the local close. By the local close the NZ dollar was at 81.50 yen.
The kiwi was also buying A80.27c against the Australian dollar from A79.95c yesterday and the trade weighted index was 67.96 from 67.73.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US75.61c US75.06c
NZ dlr/Aust dlr A80.27c A79.95c
NZ dlr/euro 0.4868 0.4874
NZ dlr/yen 81.50 81.24
NZ dlr/stg 38.45p 38.48p
NZ TWI 67.96 67.73
Australian dollar US94.13c US93.88c
Euro/US dollar 1.5520 1.5399
US dollar/yen 107.87 108.23
- NZPA
