The New Zealand dollar continued to power ahead against most major currencies today as the market awaits a Reserve Bank interest rate decision later this week.
The kiwi hit six month highs today, fetching US71.42c at 5pm today from US70.66c at 5pm on Friday.
The kiwi also continued its push into new territory against the euro, fetching 61.06 euro cents at 5pm today, after breaking 60 euro cents for the first time ever on Friday.
The trade-weighted index hit a fresh post-float high of 74.31.
The kiwi was also trading at eight-year highs against the British pound and Japanese yen, hitting 41.28 pence (40.83p on Friday), and 86.63 yen (85.21).
Against the Australian dollar the kiwi was buying A95.79c from A95.11c at 5pm Friday.
The Reserve Bank is meeting on Thursday and is widely expected to hike the official cash rate by 25 basis points to 7.25 per cent. The market will focus on the wording on the accompanying statement as to whether further increases can be expected.
New Zealand already has the highest official interest rates in the industrialised world, making the kiwi a particularly attractive yield currency.
5pm today 5pm Friday
NZ dlr/US dlr US71.42 US70.66
NZ dlr/Aust dlr A95.79 A95.11
NZ dlr/euro 0.6106 0.6025
NZ dlr/yen 86.63 85.21
NZ dlr/stg 41.28 40.83
NZ TWI 74.31 73.44
Australian dollar US74.56c US74.30c
Euro/US dollar US1.1694 US1.1728
US dollar/yen 121.33 120.60
- REUTERS
<EM>Currency:</EM> Kiwi flies ahead of interest rate decision
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