The New Zealand dollar reached a fresh six-year closing high today after a busy day's trading underpinned by unexpectedly mild comments from the US Federal Reserve.
The kiwi closed at US61.35c at 5pm, its highest closing level since late 1997. At yesterday's close it was at US61.05c. The kiwi traded in a range today of US61.17c to US61.42c. The aussie was at US70.63c from US70.32c late yesterday.
The kiwi saw "a bit of action" today according to a local dealer.
The US Federal Reserve said this morning it believed currently low US short-term rates "can be maintained for a considerable period". The kiwi powered to fresh highs on the back of the Fed's comments.
"That's what got things going", the dealer said, "and it's been underpinned from there".
"It fell back a bit but there seems to be reasonable interest to buy kiwi and Australian dollars -- all non US currencies. It is a continuing US dollar story."
The dealer expected the kiwi to strengthen further in offshore session tonight.
"I think it is going to be a continuing scenario. I'd say the London and New York boys would be looking to buy currencies, not just the kiwi."
He expected to see a range tonight of US61.17c to US61.42c.
Meanwhile in Wellington at 5pm the US dollar eased to 108.19 yen from 108.39 yen late yesterday, while the euro was at US$1.1695 (US$1.1715).
On the crosses the kiwi was buying A86.87c (A86.81c yesterday), 66.37 yen (66.18), 36.05 pence (36.09), 0.8145 Swiss francs (0.8069), and 0.5246 euro (0.5213).
The Australian dollar was at $1.1514 ($1.1519).
The trade weighted index was at 63.03 (62.77), the monetary conditions index rose to plus 317 (299), and 90-day bank bills were at 5.24 per cent (5.23).
On the debt market, yields on April 2004 bonds were at 5.15 per cent (5.17), February 2006s were at 5.65 per cent (5.70), and November 2011s were at 6.00 per cent (6.06).
- NZPA
<i>Currency:</i> Kiwi hits fresh 6-year-highs
AdvertisementAdvertise with NZME.