The New Zealand dollar today vaulted higher against the United States and Australian currencies after central banks in those countries reviewed their benchmark interest rates.
At 5pm, the kiwi was at US73.16c (from US72.82c at 5pm yesterday), having traded between US72.58c and US73.28c.
Westpac currency strategist Johnathan Bayley said the kiwi began today's session at US72.70c, but shrugged off choppy early trade to strenghten this afternoon.
"The (US) dollar was pushed lower this afternoon, which pushed the kiwi-US cross higher," he told NZPA.
"Liquidity has been poor, and that also means a bigger move in kiwi-US cross if the (US) dollar has a weaker day.
"The best explanation (for that) is the market's delayed reaction to the Fed's move."
This morning the Fed lifted its benchmark rate by 25 basis points to 3 per cent.
It also indicated more measured rate hikes were likely but, given the slew of mixed US economic data of late, analysts said the Fed would be in no rush to accelerate its tightening pace.
The euro was fetching US$1.2962 (US$1.2832), while the greenback was buying 104.67 yen (105.28). The Australian dollar was at US77.81c (US77.71c).
Across the Tasman, the Reserve Bank of Australia (RBA) today held its cash rate at 5.50 per cent for the second month in a row. It will issue a monetary policy statement on Friday.
The RBA and Fed rate calls came after the Reserve Bank of New Zealand's governor, Alan Bollard, yesterday said this country's official cash rate might need to be lifted beyond 6.75 per cent.
Against the Australian dollar, the kiwi was fetching A94.03c (A93.74c), having started today's session at A93.88c.
At 5pm, the kiwi at 0.5645 (0.5677), 76.56 yen (76.70), 38.47 British pence (38.50) and 0.8701 Swiss francs (0.8750).
The trade-weighted index was at 71.24 (71.23) and the monetary conditions index was at plus 1113 (1112).
On the money markets, the 90-day bank bill yields were at 7.06 per cent (7.05), July 2009 bonds were at 5.91 (5.94), and April 2015s were at 5.79 per cent (5.84).
- NZPA
<EM>Currency:</EM> Kiwi on the rise again after slow start
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