Kiwi dollar may have peaked

Signs are emerging the dollar may have seen its peak. Having started the week above 74USc, the kiwi was at 72.88USc at 5pm yesterday. It hit a post-float high of 74.65USc last week. The weakness is a reaction to the interest rate rise in the United States and news of a wider current account deficit locally.

"This may be the first in a series of events that really turns kiwi sentiment. The deficit has been widening for a while but people are now paying more attention to it," said Westpac's senior currency strategist Johnathan Bayley.