The New Zealand dollar closed on its highs yesterday, boosted by a stronger euro and Australian dollar.
By 5pm the kiwi was at US48.85c from US48.75c at Wednesday's close. The Australian dollar ended the local session at US56.69c (US56.60c) and the euro was buying US95.67c (US95.40c).
"The euro outlook looks really positive," one local dealer said.
"People have really turned positive towards the euro against the US dollar and that is flowing through to the aussie and the kiwi.
"(Euro) has broken a few technical levels on the topside and people are saying it's becoming a bit of a "quasi-dollar" if you like, given the troubles they're having in the United States.
"It's becoming a good place to park your reserves and your dollars at the moment."
Investors are growing increasingly wary of the US dollar as American equity markets continue to founder on profit warnings, and political tensions in the Middle East increase.
Stocks, while not providing a perfect guide, have given the US dollar much of its direction in recent weeks because equities are seen as a real-time barometer for investor attitudes toward US assets and expectations for economic recovery.
The euro's strength should continue overnight, the dealer said, dragging the kiwi up with it.
He picked a range of US48.70c to US49.10c for the kiwi during the offshore session.
On the crosses at 5pm the kiwi was buying A86.20c (A86.14c at yesterday's close), 60.57 yen (60.59), 32.75 pence (32.66), 0.7504 Swiss francs (0.7549) and 0.5002 euro (0.5110).
Against the kiwi the aussie was buying $NZ1.1603 ($NZ1.1605).
On the money market 90-day bills were at 5.99 per cent (6.00), the trade-weighted index was 56.38 (56.35) and the monetary conditions index eased to minus 165 (minus 167).
The April 2004 bonds were at 5.97 per cent (6.01), the November 2006 bonds were unchanged at 6.36 per cent, and the November 2011 bonds were at 6.53 per cent (6.58).
- NZPA
<i>Currency:</i> Kiwi closes on its highs
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