KEY POINTS:
An already pumping New Zealand dollar got another fresh fillip today from stronger-than-forecast GDP data.
The kiwi topped US75c overnight for the first time in nearly seven weeks as the greenback fell to record lows and then zoomed up to US75.70c by the close.
That compares with US74.87c at yesterday's close.
Having gained 6.3 per cent this week and 14 per cent since August 17, the kiwi is heading back into nightmare territory for exporters.
Today's GDP data printed at 0.7 per cent instead of the more sedate 0.5 per cent predicted by private sector economists and the Reserve Bank.
Economists said while it may not trigger an immediate further jump in interest rates, with inflation already predicted to nudge the top of the 1-3 per cent band, rates are likely to stay high for longer.
That will increase the kiwi's yield appeal and it gained ground against all currencies.
It rose to A85.87c against the aussie from A85.30c yesterday and against the yen it rose to 87.22 from 86.49.
The trade weighted index climbed 1 per cent to 71.21.
Reserve Bank data out today showed it eased up in selling New Zealand dollars last month. It intervened to sell only a net $138 million against a hefty $1.5 billion in July.
Meanwhile, the greenback plumbed lifetime troughs against the euro and a basket of currencies. It briefly recovered after data showed an 8.3 per cent fall in new US homes sales in August - less than some commentators had feared.
Traders said the market is still convinced the US Federal Reserve will cut interest rates further at each of its remaining two meetings in 2007, despite data showing a modest slowdown in second-quarter growth and a relatively tight labour market.
Data showed the US economy grew at a revised annual rate of 3.8 per cent in the second quarter, down from earlier estimates of 4 per cent.
That compared with NZ's June year growth of 2.2 per cent and annualised growth of 4 per cent in the first half of this year.
Reuters currency rates
5pm today 5pm yesterday
NZ dlr/US dlr US75.70c US74.87c
NZ dlr/Aust dlr A85.87c A85.30c
NZ dlr/euro 0.5347 0.5290
NZ dlr/yen 87.22 86.49
NZ dlr/stg 37.43p 37.11p
NZ TWI 71.21 70.54
Australian dollar US88.22c US87.79c
Euro/US dollar 1.4162 1.4142
US dollar/yen 115.19 115.52
- NZPA