KEY POINTS:
The New Zealand dollar rose against all major currencies yesterday as investors flocked to its high return.
Bank of New Zealand currency strategist Danica Hampton said the US dollar started the day buoyed by talk that a US hedge fund was in trouble and having to buy back greenbacks.
The kiwi touched a low of US73.70c on Monday evening but that weakness was shortlived. It closed on US74.14c against US73.82c at Monday's close.
Real-money demand for the NZ dollar before the end of the month and active buying from US model accounts erased the kiwi's earlier losses against the US dollar, Hampton said.
Softer than expected US figures on inflation and Midwest business activity gave it another boost and it extended its gains, topping US74.3c.
The kiwi also picked up against the Australian dollar, closing at A89.5c, compared with Monday's A89.3c.
It rose against the euro, to 0.5432 from 0.5414 on Monday, and against the yen to 88.65 from 88.25. The trade weighted index rose to 71.74 from 71.50.
- REUTERS
