The New Zealand dollar rose as better US housing and durable goods data helped boost risk appetite and stocks on Wall Street, while at home Fonterra Cooperative Group lifted its forecast payout to farmers.
The kiwi dollar rose to 83.91 US cents from 83.45 cents at 5pm in Wellington yesterday. The trade-weighted index rose to 77.01 from 76.61.
Fonterra lifted its farmer payout forecast to $5.80 per kilogram of milk solids from $5.50, saying the increase reflected gains in global dairy commodities in the past two months, though with the drought hurting North Island milk production the company trimmed its forecast for milk volumes to be in line with last season.
On Wall Street, the Dow Jones Industrial Average gained 0.8 per cent after S&P/Case-Shiller data showed house prices in 20 cities climbed 8.1 per cent in January from a year earlier while the 5.7 per cent jump in durable goods orders last month, according to the Commerce Department.
"General risk sentiment looks positive," said Alex Sinton, senior dealer at ANZ New Zealand.
