The New Zealand dollar caught a lift with the Australian dollar today, nudging a six-week closing high after the Australian unit rallied on news of a rate hike.
At 5pm the kiwi was buying US64.08c, slightly below an intraday peak of US64.27c touched on Monday, but well up on last night's local close of US63.45c.
The Australian unit rallied to 7-month highs around US76.77c after the Reserve Bank of Australian hiked its official cash rate by 25 basis points to 5.75 per cent saying inflationary dangers warranted a pre-emptive move.
The policy tightening was the first in 14 months and left the key cash rate at its highest level since February 2001.
In New Zealand, the Australian unit closed at US76.69c, more than a cent higher than yesterday's US75.63c local close.
The New Zealand dollar trade-weighted index rose to 63.95 from 63.68, but the kiwi slipped on the Australian dollar cross to A83.54c (A83.92c).
Activity was light with Japan starting a holiday that lasts through to the weekend.
Rates:
5pm today 5pm Tuesday
NZ dlr US64.08c US63.45c
NZ dlr/Aust dlr A83.54c A83.92c
NZ dlr/euro 0.5066 0.5045
NZ dlr/yen 72.55 72.17
NZ dlr/stg 34.78 34.79
NZ TWI 63.95 63.68
Australian dollar US76.69c US75.63c
Euro/US dollar US1.2646 US1.2580
US dollar/yen 113.21 113.73
<EM>Currency:</EM> Dollar rallies above US64c
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