NZ dollar spikes vs US, yen, falls against aussie

The New Zealand dollar spiked last night to recent highs against the United States and Japanese currencies, while falling away against the broadly stronger Australian dollar.

According to Reuters data the kiwi reached US71.16c about 9pm, its highest level in more than a week, then slipped away to be US70.87c by 8am, slightly up from its level at 5pm yesterday.

The NZ dollar also peaked at a 10-week high of 65.92 yen, falling away to 65.58 yen by the local open.

ANZ bank said a short-lived spike for the NZ dollar found plenty of willing sellers and corrected easily.

Against the aussie, the NZ dollar fell quickly from yesterday evening, getting down to A77.39c at 8am from A77.83c at the local close. Early Saturday the kiwi had reached a three-week high against its trans-Tasman counterpart, just shy of A78c.

Comments by Reserve Bank of Australia Governor Glenn Stevens yesterday lifted the aussie, and made the job of the cross rising above A78c "simply too hard", ANZ said.

It expected the NZ dollar would have major difficulties moving higher against the aussie, as the Reserve Bank of Australia's April 6 interest rate decision approached and looked set to deliver yet another interest rate rise.

The NZ dollar was at 0.5263 euro at 8am, barely changed from the local close, with the European currency strengthening broadly as debt-stricken Greece sold seven-year bonds, even though investors remained anxious about the country's long-term ability to finance itself at affordable rates.

After hitting a 10-month low below US$1.33 last week, the euro rose above US$1.35 as Greece returned to capital markets for the first time since euro zone leaders agreed to extend the southern European country a financial safety net.

Greece's debt management agency said the country sold 5 billion euros ($9.5b) of new seven-year debt at 5.9 per cent, a yield more than twice that Germany pays.

New Zealand's trade weighted index fell to 65.95 at 8am from 66 at 5pm.

- NZPA