The New Zealand dollar made a sharp rise above US61c mid-afternoon today, having been down around US60.50c earlier in the day.
Even before the uptick the currency had been showing signs of some steadying above the 22-month low above US60.48c reached yesterday.
Analysts attributed the strengthening of the kiwi to technical selling after comments on the economy by Finance Minister Michael Cullen were reported by news services.
Among his comments today Dr Cullen said surveys showed a mild upswing in business confidence this quarter, and if there were a technical recession, it would be short and small.
Around 5pm the kiwi was buying US61.10c, compared to US60.61c this morning.
It also strengthened against the euro, yen and sterling, while being almost unchanged against the Australian currency.
The main factor influencing currency markets today was the wait for a widely anticipated rate rise from the US Federal Reserve due at 7.15am tomorrow (NZT).
A 25 basis point rise in the federal funds rate to 4.75 per cent is expected, which would be the 15th straight rate rise since mid-2004 and would narrow the gap with New Zealand's 7.25 per cent.
Many dealers are also waiting to see the central bank's post-meeting statement for a clearer indication of how long US rate rises will continue.
5pm today 5pm Monday
NZ dlr US61.10c US60.91c
NZ dlr/Aust dlr A85.97c A86.03c
NZ dlr/euro 0.5090 0.5054
NZ dlr/yen 71.52 70.93
NZ dlr/stg 34.99p 34.86p
NZ TWI 63.29 63.01
Australian dollar US71.06c US70.78c
Euro/US dollar US1.2004 US1.2051
US dollar/yen 117.05 116.48
- NZPA
<EM>Currency:</EM> Sharp rise after Cullen comments
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