The New Zealand dollar closed at a six-week high today ahead of tomorrow's Reserve Bank interest rate review, where the central bank is widely expected to hike the official rate to 7 percent.
At 5pm the kiwi was buying US70.64c, its highest close since September 14. That compares with its local open of US70.55c and last night's close of US70.21c.
A rate hike tomorrow will maintain New Zealand's standing as having the highest official cash rate in the industrialised world -- a factor that has underpinned the unit in the past year.
On a trade-weighted basis, measuring the unit against a basket of currencies, the kiwi closed at 71.87 -- close to an all time high.
The local unit ignored yesterday's comments from Finance Minister Michael Cullen saying it was overvalued and set for a fall.
It also overlooked a dour ANZ National Bank survey on business confidence, showing a net 55 percent of businesses expect conditions to deteriorate in the coming year. That was close to a 17-year low.
The confidence survey showed rising inflation expectations, almost guaranteeing a rate rise tomorrow and making another one highly probable in December.
The New Zealand dollar showed limited reaction to Australia's slightly lower-than-expected third quarter inflation data, out today. The Australian consumer price index rose 0.9 percent on the previous quarter, compared with forecasts for a 1.1 percent gain.
The market has already priced in a 25 basis point interest rate hike tomorrow and will be eyeing RB Governor Alan Bollard's statement for signs of future rate rises.
The following are Reuters currency rates:
NZ dlr US70.64c US70.21c
NZ dlr/Aust dlr A93.45c A93.57c
NZ dlr/euro 0.5838 0.5865
NZ dlr/yen 81.35 81.06
NZ dlr/stg 39.61p 39.74p
NZ TWI 71.87 71.80
Australian dollar US75.61c US75.03c
Euro/US dollar US1.2103 US1.1972
US dollar/yen 115.16 115.45
- NZPA
<EM>Currency:</EM> Kiwi ignores poor corporate confidence
AdvertisementAdvertise with NZME.