The New Zealand dollar hurdled the 45USc barrier yesterday and the 90-day bank bill yield fell 12 points to 6.46 per cent from 6.58 per cent as Thursday's optimism towards the greenback subsided.
The kiwi rose more than a cent to 45.09c - its highest level in five months - by the market's nominal 5pm close, from 44.00c at Thursday's close. The unit has risen 16 per cent since its all time low of 38.95c in October.
"The market has been relatively liquid in the kiwi," a currency dealer said.
"US payroll data set for release overnight is expected to be negative, while European data is showing a reasonable performance.
Bank of New Zealand chief currency dealer Mike Symonds said the markets were taking the view that the Fed's actions indicated there was growing concern on their part on how rapidly the US economy is slowing.
The euro and the aussie also benefited from caving support for the greenback, reaching 95.46USc and 57.04USc respectively by 5pm local time from US93.06c and US55.72c at yesterday's close.
"The local market is basically just following what is happening in the euro and the aussie," one dealer said.
The kiwi hit a session high of 45.18USc. Dealers said breaking through the US45c mark was a crucial step for the unit.
"It sort of opens the door up to 45.50USc," a dealer said.
- NZPA
<i>Currency:</i> Bank bills rally with dollar
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