The New Zealand dollar dashed up to a new post float high of US73.67 today in a session charged with positive sentiment, a dealer said.
At 5pm the kiwi was at US73.67, having closed at US73.36c at the same time yesterday. The kiwi's previous highest post-float level was US73.64c. It began today's session at US73.46c.
BNZ currency strategist Sue Trinh said the kiwi was boosted by market expectations of a 25 basis point rise in the official cash rate, currently at 6.50 percent.
"The market is getting more and more bulled up for a rate hike on Thursday," Ms Trinh told NZPA today.
"You can be assured that if the Reserve Bank does not hike rates the kiwi will get a drubbing," she said, noting it could drop about 5 percent in the following 24-hour period.
"The US dollar is mixed in our local sessions at the moment, but it is interesting to note that the kiwi and Australian dollar and euro are also a little firmer."
Meanwhile, the greenback was buying 104.98 yen (104.72), and the euro was buying $US1.3228 ($US1.3237). The Australian dollar was trading at US79.38c (US78.97c).
In a thin week for US economic releases, most attention is likely to focus on Friday's US trade data.
On the crosses, the kiwi was buying A92.87c (A92.80c), 0.5569 euro (0.5543), 38.46 British pence (38.18), 77.35 yen (76.81), and 0.8647 Swiss francs (0.8577).
The Trade-Weighted Index was at 71.12 (70.82), and the monetary conditions index was at plus 1088 (1066).
On the money markets, 90-day bank bill yields were at 6.92 percent (6.89), July 2009 bonds were at 6.25 percent (6.23), and April 2015s were at 6.11 percent (6.08).
- NZPA
<EM>Currency:</EM> Kiwi Dashes to fresh post float high in sentiment charged market
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