The New Zealand dollar rallied strongly today on the back of low unemployment figures and a soft US dollar.
At 5pm the kiwi was riding on a six-week high of US70.14c having ranged widely on strong volumes. This compared with yesterday's close of US69.56c.
A June quarter fall in the unemployment rate to 3.7 per cent for the June quarter saw the kiwi dollar jump 10 points and it kept on going, National Bank dealer Murray Hindley said.
The figure is nearly the lowest since unemployment statistics began in the mid-1980s.
Commentators say the continuation of a tight labour market and robust job growth means the Reserve Bank will be less inclined to relent on easing interest rates despite the economy slowing.
Also helping the kiwi was continued yield-driven interest from Asian buyers in New Zealand bonds, and a weaker greenback in Asia.
It also continued to perform strongly against the Australian dollar, peaking at A91.25c before closing at A91.14c (compared with A91c yesterday).
Mr Hindley said Australian employment figures out today "on the surface looked reasonably strong as well but were made up of a lot of part-time employment".
Overnight, dealers believe the kiwi will test US70.40c. Tomorrow all eyes will be the US trade balance and local retail sales figures, which are expected to be strong after the Lions tour.
At 5pm the euro was trading at US1.2419 (1.2360), the US dollar was at 110.25 yen (111.24 yen) and the aussie was up at US76.95c (US76.27c).
On other crosses, the kiwi was stronger against the euro at 0.5650 (0.5618), the pound at 38.99 (38.83), and the yen at 77.34 (77.20). It rose to 0.8789 against the Swiss franc (0.8749) and the Australian dollar fell to $1.0975 ($1.0983).
On a trade-weighted basis the kiwi was at 70.07 (69.70). The MCI rose to 1028 (1001).
On the money market, 90-day bank bill yields were steady on 7.04 per cent, July 2009 bond yields were on 5.86 per cent (5.82), and April 2015s on 5.90 per cent (5.86).
- NZPA
<EM>Currency:</EM> Kiwi rises on strong job data and yield interest
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