The New Zealand dollar strengthened against the Australian currency yesterday, and finished on levels not seen for more than a year against the greenback.
At 5pm the kiwi traded at US44.15c, its highest level since February 2001 and up from US43.88c on Thursday, while the aussie was at US53.28c, from its US53.13c close last week.
The kiwi had seen a low during the day of US44.12c.
Richard Marshall of ANZ Investment Bank said the kiwi had tested A83c but was backing off as the Easter break's light volume continued.
"That's suggesting there's an interested seller around there," he said.
The kiwi was also performing well against the euro, which closed yesterday at US87.88c (US87.35).
"The major currencies are not really in focus at the moment as far as the aussie and kiwi are concerned. They do seem to have a mind of their own.
"But they seem to be faltering just slightly today having performed very well in the last two or three days, I think there's a bit of correction going on."
Mr Marshall picked the kiwi to trade overnight between US43.80c and US44.30c.
Meanwhile, the US dollar continued buckling under the weight of heightened tensions in the Middle East. The spectre of US involvement kept dollar bulls subdued as the Israeli army advanced into more Palestinian self-rule areas of the West Bank.
On the crosses at 5pm the kiwi traded at A82.86c (A82.63c at Thursday's close), 0.5022 euro (0.5028), 58.91 yen (58.18), 30.68 pence (30.79) and 0.7343 Swiss francs (0.7368).
The aussie was at $NZ1.2069 ($NZ1.2103).
The monetary conditions index tightened to minus 475 (minus 503), the trade weighted index was at 53.35 (53.14), and 90-day bank bills were at 5.63 per cent (5.55).
On the debt market, the April 2004 bonds were at 6.34 per cent (6.26), the November 2006s at 6.83 per cent (6.74) and the November 2011s at 6.97 per cent (6.87).
- NZPA
<i>Currency:</i> Kiwi closes at 14 month high against greenback
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