KEY POINTS:
The New Zealand dollar climbed to its highest level in two decades yesterday as more intervention by the Reserve Bank appeared to do little to slow its progress.
The kiwi stopped just short of US77c yesterday at US76.83c - its highest level since the currency was floated in March 1985. It closed at US76.64c.
The kiwi also hit a 22-year high on the trade-weighted index, the measure preferred by the Reserve Bank, of 74.75.
While the Reserve Bank is not believed to have intervened again in the currency markets yesterday when the New Zealand dollar hit its new highs, it did so on Saturday morning, or late on Friday in New York trading.
The intervention pushed the kiwi down about half a cent - from US76.60c to US76.04c - but by yesterday it had regained its losses and more.
The Reserve Bank has now used its intervention powers - granted two years ago - three times in less than a fortnight, but the kiwi is higher than it was when it started.
Bank of New Zealand currency strategist Danica Hampton said it was too early to conclude the strategy was a failure. "It's giving people something to think about. It's definitely creating some uncertainty."
In a year or 18 months if the kiwi was back down at US60c or US65c then intervention would be deemed to be a success, she said.
ANZ senior dealer Alex Sinton said ongoing demand for the high yields available in New Zealand pushed the kiwi to its highs yesterday.
