KEY POINTS:
The New Zealand dollar gained on a weakening euro, while modest gains by equities in the United States helped push the kiwi above US55c against the greenback.
By 8am the NZ dollar was buying 0.4287 euro from 0.4221 at 5pm yesterday.
Demand for the euro fell as investors were pessimistic about whether a proposed 200-billion euro European stimulus package will be sufficient to ease the financial crisis.
The European currency also suffered after the European Central Bank said falling price pressures in the euro zone have left "ample room" to move on interest rates.
Helping the US dollar against the euro was a string of weak US economic data which renewed worries of a deepening economic recession, leading investors to seek the greenback as a haven.
Early today the NZ dollar briefly spiked over US55.45c from US54.75c at 5pm. By today's local open the kiwi was at US55.17c.
BNZ currency strategist Danica Hampton said a lift in US shares, as positions were squared ahead of the Thanksgiving holiday, helped push the NZ dollar above US55c.
But the deteriorating global backdrop, combined with the New Zealand recession and expectations of aggressive Reserve Bank rate cuts, should ensure bounces in the kiwi against the greenback were limited.
The NZ dollar also lifted against the yen to 52.74 by the local open from 52.05.
Against the Australian dollar, the kiwi edged down to A84.85c at 8am, while the trade weighted index was up to 55.88 from 55.39 at 5pm.
- NZPA
