The New Zealand dollar enjoyed a rare day in the sun yesterday, adding over half a cent to its value by the close of local trade.
By 5 pm, the kiwi had rallied to 42.02USc from 41.47c at Tuesday's close.
But, as usual, it had the fate of other key currencies to thank for the upward movement.
"In the very short term there seems to be a bit of a turnaround in the fate of the US dollar," one currency dealer said, and that sparked a revival in the euro, aussie and kiwi.
Weaker-than-expected United States manufacturing data released overnight put the skids under the greenback, which was further weakened by a rally in the Japanese yen, buoyed by renewed optimism that the new Government in Tokyo will move to reform the ailingeconomy.
The dealer warned strong kiwi dollar supporters not to break out the bubbly yet, however, with the local unit's overnight and daytime rally exaggerated by illiquid holidaytrade.
The kiwi was also heartened by a Reserve Bank of Australia decision to hold rates steady at 5 per cent after a succession of cuts - a sign that economic recovery is in sight for New Zealand's number-one trade destination.
The Australian dollar rallied to close locally at 52USc from 51.18c.
- NZPA
<i>Currency:</i> Kiwi has rare day in the sun
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