The New Zealand dollar popped above US42c yesterday, buoyed by similar rises in the Australian dollar and the euro.
At 5pm the kiwi was at US42.04c, up from its Friday night close of US41.69c, while the Australian dollar improved to US51.22c (US51.07). The euro was at US87.31 (US87.08).
"The kiwi has had a better day today," Bank of New Zealand forex manager Mike Symonds said.
"US42.10c has been the high so far in the kiwi, which is certainly a good performance given we opened around the US41.75-80c level this morning."
A twenty point rise in the aussie dollar and a stronger euro had both contributed to the kiwi's rise, Mr Symonds said.
Dealers expected the kiwi to trade between US41.85c and US42.15c overnight.
"Whether this rally can be sustained will depend on whether the kiwi can breach the US42.20-30c area," Mr Symonds said.
Possible influences on the kiwi this week include the retail trade figures for the December quarter out today, and Thursday's food price index for January.
On the crosses at 5pm the kiwi traded at A82.08c (A81.84c at Friday's close), 56.65 yen (55.96), 29.67 pence (29.54), 0.7102 Swiss francs (0.7068), and 0.4815 euro (0.4799). The aussie traded at $NZ1.2184 from $NZ1.2212 yesterday.
The trade weighted index was at 51.39 (51.07), the monetary conditions index was at minus 736 (minus 770), and 90-day bank bills were at 4.90 per cent (4.88).
On the debt market, March 2002 bonds were at 4.75 per cent (4.74), April 2004s were at 5.82 (5.77), November 2006s were at 6.35 per cent (6.29), and November 2011s were at 6.60 per cent (6.55).
- NZPA
<i>Currency:</i> Kiwi closes higher on Aussie/Euro rallies
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