Currency: Dollar gains on positive data

The New Zealand dollar rose today on a combination of positive economic data and traders cutting out positions.

The focus is turning to the Reserve Bank of New Zealand's official rate decision tomorrow and there was some positive economic data today to alter the picture the bank considers.

New Zealand recorded its largest trade surplus for a March month in dollar terms since 2002 and a survey recorded a big improvement in the sentiment of business people.

By 5pm the NZ dollar was buying US56.58c, up from US55.40c yesterday.

"The currency has been perky pretty much all day," said BNZ Capital currency strategist Danica Hampton.

"People got frustrated with it not falling and there was a squeeze on short positions," she said.

This took the currency to around US56.40c and the National Bank Business Outlook survey, which recorded an improvement in outlook, helped the currency rise further.

Overnight US Gross Domestic Product data and a statement from the Federal Open Market Committee are among factors that could change the global backdrop this market operates in.

At 5pm the NZ dollar was at 0.4295 euro from 0.4264 yesterday.

Against the Australian dollar it was at A79.45c, up from A79.05c yesterday.

The NZ dollar lifted to 54.75 yen from 53.20, and the trade weighted index was up to 56.25 from 55.43.

Currency rates:

5pm today 5pm yesterday

NZ dlr/US dlr US56.58c US55.40c

NZ dlr/Aust dlr A79.45c A79.05c

NZ dlr/euro 0.4295 0.4264

NZ dlr/yen 54.75 53.20

NZ dlr/stg 38.50p 38.03p

NZ TWI 56.25 55.43

Aust dlr/US dlr 71.18c 70.08c

Euro/US dlr 1.3174 1.2995

US dlr/yen 96.80 96.09

- NZPA