NZ dollar surges against aussie

Photo / Dean Purcell

The New Zealand dollar surged against the Australian currency overnight as the election across the Tasman on Saturday remains too close to call.

The kiwi briefly topped A79.75c, its highest level against the aussie in 10 days, easing to A79.54c by 8am from A78.78c at 5pm yesterday.

BNZ markets strategist Mike Jones said election uncertainty had started to weigh on the Australian dollar, particularly related to possible changes to resources tax and the introduction of austerity measures.

Along with its strengthening against the aussie, the NZ dollar was underpinned overnight by rumoured demand from sovereign and quasi-sovereign accounts.

The NZ dollar reached a one-week high against the greenback around US71.90c from US71.06c at 5pm. By the local open the kiwi had eased to US71.52c.

The NZ dollar also reached a two-week high of 0.5578 euro, falling back to 0.5561 by 8am from 0.5535 at the local close.

Against the Japanese currency, the kiwi was up to 61.12 yen at 8am from 60.73 at 5pm.

The trade weighted index was 66.71 at 8am from 66.31 at 5pm.

- NZPA