The New Zealand dollar is heading for a 1 per cent gain against the greenback this week as commodity currencies came back into favour on the prospect of further stimulus in Europe and a rebound in oil prices.
The kiwi rose to 65.24 US cents at 5pm in Wellington yesterday from 64.62 cents on Friday in New York last week. The trade-weighted index is heading for a 1.2 per cent weekly advance and was last at 71.98.
A BusinessDesk survey of eight currency analysts predicted the kiwi would trade between 63 US cents and 66.50 cents this week. Five expected the kiwi to decline while three thought it would gain.
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Investor sentiment has been glum so far this year but improved late in the week after European Central Bank president Mario Draghi suggested the ECB might add monetary stimulus as soon as the central bank's next policy meeting in March.