Continued weakness in the US dollar saw the kiwi break through the US72c mark today.
At 5pm the kiwi was at US72.12c (from US71.81c at 5pm yesterday), having traded between US71.63c and US72.18c during the day.
Westpac currency dealer Basil Payn said there was real support around US71.80c, with initial resistance at around US72.70c. But he said the kiwi was likely to have test that resistance and have a go at the post-float record high of US72.75c , "...maybe not by the end of this week, but certainly early next week."
He said continued weakness in the US dollar, combined with steady demand from Asia, has been behind the kiwi's grind higher.
Reports out overnight showing accelerating US factory growth in November and a strong start to consumer spending in October did nothing to stem the greenback's slide, despite bolstering expectations for the Federal Reserve to keep lifting official rates.
At 5pm today the euro was buying US$1.3365 compared with its US$1.3302 close here yesterday while the US dollar was trading at 102.30 yen compared with 102.82 yesterday and the Australian dollar was at US78.11c from US77.62c at 5pm yesterday.
The kiwi softened against the Australian dollar, as the aussie regained some of the ground it lost earlier in the week on the back of disappointing economic data. At 5pm the kiwi was at A92.36c, compared to A92.47c at the same time yesterday.
On its other major crosses, the kiwi was at 0.5397 euro (0.5399), 37.29 British pence (37.57), 73.79 yen (73.83), and 0.8209 Swiss francs (0.8173). The trade-weighted index was at 69.30 against 69.20 yesterday.
On the money market, 90-day bank bill yields were at 6.67 per cent (from 6.68 per cent), February 2006 bond yields were at 6.21 per cent (6.19), July 2009s were at 5.97 per cent (5.95) and April 2013s were at 5.95 per cent (5.94 per cent).
- NZPA
<EM>Currency: </EM>Kiwi breaks through US72C, eyes up post-float record
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