After the Australian dollar fell victim to kiwi heroics yesterday, today it was the turn of the yen.
The New Zealand dollar hit an eight-year high against the Japanese currency this afternoon, riding as high as 84.45 yen, as speculation increased over more issuance of uridashi.
At 5pm, it was up against the dollar at US70.42c, after reaching US70.28c at the same time yesterday. It traded in a range of US70.25c to US70.54c today.
"The kiwi was very well underpinned by ongoing demand for yield," BNZ currency strategist Sue Trinh said.
Elsewhere, the kiwi held its recent gains against all currencies.
Ms Trinh said she expected it to stay there ahead of the US payrolls report, out tomorrow night (NZ time).
Against the Australian dollar, it was up at A95.32c after reaching A95.02c, and the trade weighted index hit a new post float record of 73.09, after hitting 72.93 yesterday.
The kiwi's strength was despite a report from the Paris-based OECD saying New Zealand's economy could be headed for a hard fall and monetary tightening by the Reserve Bank had failed to slow demand growth.
A further dose of tightening is expected next week, and that has been behind the currency's recent rise.
The Australian dollar was trading at US73.88c, down on its US73.95c close yesterday.
Rates:
5pm today 5pm Wednesday
NZ dlr/US dlr US70.42 US70.28
NZ dlr/Aust dlr A95.32 A95.02
NZ dlr/euro 0.5974 0.5964
NZ dlr/yen 84.36 83.97
NZ dlr/stg 40.73 40.87
NZ TWI 73.09 72.94
Australian dollar US73.99c US73.95c
Euro/US dollar US1.1787 US1.1786
US dollar/yen 119.81 119.46
- NZPA
<EM>Currency: </EM>Dollar hits 8-year-high against Yen
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