The New Zealand dollar has had a strong weekend, gaining on the major trading currencies and rising to its highest level in more than two months against the Australian dollar.
By 8am today the kiwi was buying US70.58c from US69.75c at 5pm on Friday, while against the aussie
it was at A81.63c from A80.69c.
ANZ bank said the NZ and Australian dollars appeared to be going through a period of consolidation.
After "swift, sharp moves" lower in the past couple of weeks, the antipodean currencies could be expected to take a breather at some stage, ANZ said.
But while the antipodean currencies could drift higher this week, the overall trend remained down. The greenback remained in favour, which by default meant a lower kiwi and aussie.
The US dollar jumped to a six-month high against the euro, buoyed by another drop in oil prices and growing views the US economic slowdown may be bottoming while growth in the euro zone stalls.
The greenback also reached a 7-1/2 month high at 110.66 yen, and the US dollar's rally knocked an already floundering sterling to two-year lows near US$1.85 .
The kiwi also rose against both the euro and yen, opening locally today at 0.4807 euro from 0.4722 at 5pm on Friday, and at 77.98 yen from 76.86. The trade weighted index was 65.95 at 8am from 65.05.
- NZPA
