5.49PM
The New Zealand dollar edged back against the aussie dollar today after glimpsing an all-time high since the kiwi was floated in 1985 in the morning.
The cross rate was at A94.73c this morning, just below its peak in June 1995, when it hit a record high of A94.98c.
ANZ dealer Mark Elliott said parity was quite possible following yesterday's Reserve Bank interest rate rise and the hawkish stance that suggests two more rate rises this year.
"Because you have a consensus of opinion that historically this is the level it has peaked out at and it's going to do it again, it probably means that it is going to go higher" he said.
"I wouldn't be surprised in the next month or so we have a lunge towards parity. I don't think it will be sustained -- this is just an overshoot -- but we may extend to those kinds of levels.
"When we start hearing about parity parties in the press then we'll know that's the time to sell," he added.
Against the greenback, the kiwi closed at US65.23 compared with its US65.30c close yesterday.
Against the other crosses at 5.30pm, the kiwi was buying 0.5326 euro (0.5362), 36.41 British pence (36.57), 71.85 yen (71.51), and 0.8203 Swiss francs (0.8240).
Against the US dollar, the Australian dollar closed at US68.98c from US69.32c at 5pm yesterday and the euro closed at $US1.2247 ($US1.2177) while the greenback was fetching 110.15 yen (109.45 yen).
The trade weighted index finished at 66.59 (66.74) and the monetary conditions index at 731 from 742.
In the money market, the 90-day bank bill yields were at 6.30 percent (from 6.62 percent) while on the bond market the curve turned more negative, with February 2006s at 6.26 percent (6.25), July 2009s at 6.20 percent and April 2013s at 6.17 percent (6.16).
- NZPA
<i>Currency:</i> Kiwi edges back against aussie after glimpsing all-time high
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