The kiwi, already buoyant from a renewed bout of US dollar weakness, rose higher on news today Australia's central bank had left its key interest rate unchanged.
At 5pm in Wellington the kiwi closed at its highs for the day at US65.36c from US64.95c at 8.30am and US65.05c at 5pm last night. It had traded as low US64.79c early today.
The aussie was at US71.79c from US71.55c at 5pm yesterday.
The kiwi, having risen in recent session's as the greenback slipped on lacklustre economic data, found more support today as the Reserve Bank of Australia (RBA) left its official cash rate unchanged at 5.25 per cent.
ANZ Investment Bank senior dealer Mark Elliott said there was no negative reaction to the RBA's widely expected decision which was "the green light to buy".
"Both the kiwi and the aussie have rallied strongly, the cross rates remain fairly firm.
"This is about US dollar weakness more than anything else, and it looks like a decisive sort of break out and should continue."
Mr Elliott said the kiwi could extend its recent moves higher past the US70.90c seven year high seen in February this year.
Meanwhile, the kiwi was buying A91.05c (A90.83c at 5pm yesterday).
The euro was buying US$1.2329 (US$1.2309) while the greenback was buying 108.70 yen (109.44).
On the other crosses the kiwi was buying 35.46 British pence (35.47), 0.5303 euro (0.5281), 71.09 yen (71.18), and 0.8057 Swiss francs (0.8030).
The trade-weighted index was at 65.91 (65.76), while the monetary conditions index was at plus 641 (628).
On the money market, 90-day bank bill yields were at 6.23 per cent (6.22 per cent) and on the bond market, the February 2006s were unchanged at 6.02 per cent, July 2009s were at 6.10 per cent (6.12) and April 2013s were unchanged at 6.25 per cent.
- NZPA
<i>Currency:</i> Kiwi looks skyward once more
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