Kiwi dollar up a cent to 66.3c

The New Zealand dollar reached its highest level in 9-1/2 months against the greenback as the kiwi raced up a cent in the early hours of the morning.

The NZ dollar peaked at US66.30c, then fell away to be at US65.95c by 8am, compared to US65.53c at 5pm yesterday.

ANZ bank said that while US dollar weakness contributed to the kiwi's move higher, the fact the NZ dollar outperformed nearly all other majors showed it was sought after in its own right.

The recent moves higher for the NZ dollar were far from favourable for an economy that needed rebalancing, ANZ said.

The NZ dollar rose against other currencies as well as the greenback, buying 0.4640 euro at 8am from 0.4618 at 5pm and 61.65 yen from 61.38. Around 6am the kiwi reached an eight-month high against the European currency, above 0.4650 euro.

The trade weighted index lifted to 61.59 at 8am from 61.27 at 5pm, while against the Australian dollar the kiwi was up to A80.82c at the local open from A80.30c.

Broadly, the US dollar edged lower as a steady performance in the stock market and stronger home prices more than offset weak bank earnings and dented the greenback's safe-haven allure.

- NZPA