5.40pm - By ANDREW MACDONALD
The New Zealand dollar took a whirlwind ride higher today as the Asian currency markets bought the euro in the wake of the G7 meeting in Florida over the weekend, a broker said.
At 5pm, the kiwi was at US69.59c (from US69.50c at the same time yesterday), having traded between US68.73c and US69.67c, its highest since May 1997.
The Australian dollar was at US77.48c (US76.12c).
BNZ currency strategist Sue Trinh said the kiwi had initially traded lower this morning, but later gained momentum.
"If you wanted wild ranges, today was the day for you," Ms Trinh told NZPA today.
"The initial reaction after the G7 meeting (in Florida over the weekend) was to sell the euro down and the kiwi with it," she said.
"But in the middle of the day, when Tokyo and the other Asian markets opened they chose to buy the euro. That sent the kiwi soaring," Ms Trinh said.
The kiwi was still likely to push over the key US70c mark later this year.
Leaders of the G7 rich economies warned at the meeting that "excess volatility" and "disorderly movements" in exchange rates could hobble world economic growth.
Analysts said a communique issued after the meeting gave European policy-makers a global seal of assent to their efforts to talk down the euro -- whose surge threatens the region's export-led recovery.
Meanwhile, the euro was at US$1.2714 (US$1.2527), while the greenback was fetching 105.69 yen (105.54)
On the crosses, the kiwi was buying A89.83c (A89.49c), 0.5472 euro (0.5437), 73.55 yen (71.87), 37.55 British pence (37.19), and 0.8577 Swiss francs (0.8520).
On a trade weighted basis, the New Zealand dollar was at 68.37 (67.37).
The monetary conditions index was at plus 762 (688), and 90-day bank bills were at 5.62 per cent (5.61).
February 2006 bond yields were at 5.58 per cent (5.61), July 2009 bonds were at 5.78 per cent (5.83) and the April 2013s were at 5.91 per cent (5.96).
- NZPA
<i>Currency:</i> Kiwi higher as Asian markets buy up the euro, says broker
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