NZ dollar firms over US70c

The New Zealand dollar firmed today against a weak US dollar as investors were again more comfortable with risk.

By 5pm today the NZ dollar was buying US70.57c from US70.14c at 5pm yesterday.

BNZ Capital senior strategist Danica Hampton said the NZ dollar rose on Tuesday night after stronger than expected retail sales in the United States and upbeat comments from Federal Reserve chairman Ben Bernanke lent support to the notion that the worst of the US recession had passed.

Growing confidence in the US economic recovery helped underpin appetite for risky currencies like the NZ dollar.

The US dollar fell to year-low on an index that measures a basket of currencies. It held steady around 91.02 yen, staying above a seven-month trough of 90.18 touched earlier this week.

The NZ dollar lifted to 0.4807 euro at 5pm from 0.4799 at the same time yesterday, and was up to 64.24 yen from 63.89.

Against the Australian dollar, which also got a boost from the improvement in investor sentiment, it was little changed at A81.46c from A81.44c yesterday.

The trade weighted index was 64.31 at 5pm from 64.03 yesterday.

Reuters currency rates:

5pm today 5pm yesterday

NZ dlr/US dlr US70.57c US70.14c

NZ dlr/Aust dlr A81.46c A81.44c

NZ dlr/euro 0.4807 0.4799

NZ dlr/yen 64.24 63.89

NZ dlr/stg 42.85 42.21

NZ TWI 64.31 64.03

Aust dlr/US dlr 86.57c 86.10c

Euro/US dlr 1.4676 1.4620

US dlr/yen 91.02 91.07

- NZPA