KEY POINTS:
Some stronger-than-expected retail sales data yesterday bolstered the chances of another interest rate rise, sending the New Zealand dollar to a 23-month high.
The kiwi yesterday hit US73.58c, just US1c below its post-float high of two years ago. It traded within a range of 50 basis points, closing at US73.45c, compared with US72.65c the day before.
Much of the kiwi's strength has been underpinned by a firm Australian dollar, which rose to US83.18c against US82.42c on Thursday.
A Deutsche Bank strategist said the Australian dollar could reach close to US85c in coming weeks.
The kiwi/aussie cross was A88.31c (A88.14c), and the trade weighted index gained half a per cent to 71.20.
Some analysts have tipped the New Zealand dollar to rise above US75c after yesterday's retail sales figures.
Westpac currency strategist Michael Gordon thought the kiwi would test US74c overnight.
- NZPA
