The New Zealand dollar continued to gain today as the United States dollar eased on growing concerns about its post-war outlook.
By 5pm the kiwi rose to US54.52c from US54.30c at yesterday's close, while its Australian counterpart gained ground to US60.21c (US59.98c).
One local dealer said the kiwi rushed up to a high during the day of US54.70c, from its opening level of US54.40c.
"Really the majority of the day has been spent in pretty thin trading around US54.45/55c," he said.
The kiwi's range overnight was likely to be US54.20/75c.
In Asian trade the US dollar was undermined by worries that the US economic outlook may not be that promising, even after the war is over.
Traders said rapid US progress in the war, once seen as synonymous with a quick recovery in the US economy, now appears to be losing the leverage to lift the dollar and US shares.
In Wellington at 5pm the euro was at $US1.0745, against $US1.0664 yesterday. The US dollar was a touch stronger against the Japanese unit at 120.02 yen (119.85) after the Bank of Japan left monetary policy unchanged in a decision that was expected, but not particularly welcomed by the market.
On the crosses at 5pm the kiwi was buying A90.56c (A90.31c at 5pm yesterday), 0.5075 euro (0.5065), 35.04 pence (34.79), 0.7541 Swiss francs (0.7520) and 65.43 yen (64.75).
The Australian dollar was buying $NZ1.1045 ($NZ1.1069).
On the money market, 90-day bills were at 5.81 per cent (5.79), the monetary conditions index was at plus 143 (112) and the trade-weighted index was at 60.17 (59.80).
Among the bonds, the April 2004 yields were at 5.45 per cent (5.50), the November 2006s were at 5.54 per cent (5.61) and the November 2011s were at 5.96 per cent (6.05).
- NZPA
<i>Currency:</i> Kiwi makes gains on concerns about post-war US dollar
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