KEY POINTS:
The New Zealand dollar hit yet another post-float high against the greenback overnight, getting ever closer to the US77c mark.
Shortly before 1am the kiwi touched US76.94c, according to Reuters data, its highest level since the currency was floated in March 1985.
It was the second post-float record this week, with the NZ dollar having hit the then record figure of US76.84c on Monday.
By 8am the kiwi was back down to US76.64c from US76.74c at 5pm yesterday.
The New Zealand dollar also spiked to A90.86c against its Australian counterpart -- the highest level since February 2006 -- but spent most of the night in a narrow band.
By 8am it was buying A90.56c from A90.52c at 5pm yesterday.
The story was somewhat different against the Japanese currency, with the kiwi dropping to 94.24 yen around 9.30pm yesterday, having topped 95 yen earlier in the day.
At 8am the NZ dollar was buying 94.50 yen, from 94.76 at 5pm yesterday.
Against the euro the kiwi was buying 0.5692 at 8am from 0.5699 at 5pm yesterday. The trade weighted index eased to 74.51 from 74.60.
The ANZ bank today said the New Zealand dollar appeared to be invincible for now, with yield chasers continuing to drive it.
A barrage of international official warnings about the carry trade -- where low interest rate currencies are borrowed to invest in higher yielding assets -- had seen the yen strengthen against the greenback, but the kiwi continued to power ahead.
ANZ said some pullback in the NZ dollar had been seen overnight following the release of the Westpac McDermott Miller consumer confidence index showing that consumer confidence had taken a hit.
But it would take more meaningful weakness to see a more substantial move lower in the kiwi.
More important New Zealand data would start to flow today and while a spike in the kiwi above US77c was possible, heavy strategic selling above that level should be expected, ANZ said.
May merchandise trade data is due out today, current account data tomorrow and on Friday gross domestic product.
Currency rates: (8am today)
NZ dlr/US dlr US76.64c
NZ dlr/Aust dlr A90.56c
NZ dlr/euro 0.5692
NZ dlr/yen 94.50
NZ dlr/stg 38.33p
NZ TWI 74.51
Cross rates:
Australian dollar US84.63c
Euro/US dollar 1.3461
US dollar/yen 123.30
- NZPA
