Dollar continues rise against US

The New Zealand dollar rose today as the US dollar struck a 14 month low against the euro.

By 5pm the NZ dollar was buying US73.99c, up from US73.37c at 8am and US73.68c at 5pm yesterday.

Strong retail sales data yesterday was followed by strong housing data today and news that the Reserve Bank is to remove some of the temporary emergency liquidity facilities.

But Westpac senior market strategist Imre Speizer said the over-riding factor on the day was weakness in the US dollar.

"The dollar has dropped against everything and is making a significant break through a key level that has held for a month," he said.

"The US dollar looks like it is going for another big step down," he said.

The euro rose to 1.4887 against the US dollar at 5pm, the highest since August 2008, and compared to 1.4768 at 5pm yesterday.

Against the euro, the NZ dollar was 0.4970 at 5pm from 0.4986 at the same time yesterday.

The NZ dollar fell to 65.80 yen at 5pm from 66.24 yesterday, and to A81.99c against the Australian dollar from A81.20c. The trade weighted index was 66.37 from 66.49 yesterday.

- NZPA