The New Zealand dollar recovered quickly from a surprise resignation by Reserve Bank Governor Don Brash yesterday, hitting a fresh 14-month high.
At 5pm the kiwi was trading at US45.11c, consolidating a 50 point rise during Anzac Day to US44.95c at Thursday's close.
Dr Brash, who has been governor for 14 years and is famous for his hawkish outlook on monetary policy, initiated a quarter of a cent slide in the kiwi to US44.76c with his news.
But momentum kept the New Zealand dollar moving forward.
"There was a bit of a sell-off when we had the Brash announcement but really, pre-Brash there had been a significant fall-off in the US dollar across the board," Basil Payn, chief currency dealer at Westpac, said.
"Everything seems to be stronger, it's actually a US dollar story."
Mr Payn said trading volumes were not large but there had been good offshore buying.
He believed US44.80/90c would be the new base for the kiwi, with a view to breaking above US45.20/50c early next week.
Overnight he picked the kiwi to trade between US44.90/45.20c "with the risk to the top side".
On the crosses at 9am the kiwi was trading at A82.90c (A82.67c late Thursday), 0.5024 euro (0.5038), 58.11 yen (58.19), 31.03 pence (31.01) and 0.7351 Swiss francs (0.7384).
The aussie was buying $NZ1.2063 ($NZ1.2097).
The monetary conditions index was at minus 443 (minus 455), the trade weighted index was at 53.65 (53.61), and 90-day bank bills were at 5.69 per cent (5.77).
On the debt market, the April 2004 bond yields were at 6.09 per cent (6.24), the November 2006s were at 6.61 per cent (6.72), and the November 2011s were at 6.78 per cent (6.89).
- NZPA
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