Dollar nudges US75c, ease back

The New Zealand dollar pushed right up against the US75c figure today on ongoing demand for high yielding currencies then eased back.

A pattern evident this week of the NZ dollar rising in its domestic session after slipping overnight was again a feature as was strength in the Australian dollar. Firm equity markets also helped sentiment.

The NZ dollar was US74.62c at 5pm, having risen to US74.96c during the session, a new 15 month high. It was US74.30c at the open from US74.63c at 5pm yesterday.

"Every day we've come in and the kiwi's been lower and it has been bought up," one dealer said in comment on the last four days of trading.

The NZ dollar rose yesterday on higher-than-expected inflation data, which caused investors to bring forward expectations for New Zealand's first official interest rate hike since the global financial crisis.

The Australian dollar continue d to climb after Reserve Bank of Australia governor Glenn Stevens said on Thursday that it would be a mistake to be "too timid" to raise interest rates in response to a firming economy.

The RBA lifted the cash rate, by 25 basis points, to 3.25 per cent on October 6, its first rate rise in 19 months.

The yen was under pressure in Asian trading and sterling was firm.

The NZ dollar was at A80.77c at 5pm from A81.05c at the same time yesterday. It was also at 67.69 yen from 66.79 yesterday.

The trade weighted index was 66.78 at 5pm from 66.79 yesterday.

- NZPA