The New Zealand dollar today recovered from a "corrective bounce" last night and may now fly to fresh highs, a dealer said.
At 5pm in Wellington, the kiwi was buying US64.83c, up from US64.65c night and well up on last night's low of US64.12c. During today's local session it traded between US64.40c and US64.83c.
Last night the New Zealand dollar dipped as the greenback found a rare firm patch, but it was business as usual today.
ANZ Investment Bank senior dealer Mark Elliott said the New Zealand dollar opened near its low, "and basically went straight up as the euro went up -- the United States dollar got smacked again."
The US dollar weakness which has driven the other major currencies and the New Zealand dollar higher in recent months was showing no sign of slowing any time soon, despite a trickle of positive economic data from the US.
"The pervasive trend is for a softer US dollar across the board and really the economic numbers that are coming are largely irrelevant, they're not having any damping effect whatsoever on the bearish trend in the dollar.
"All these numbers out from the States... it's all irrelevant. All that they're doing is providing a catalyst for the thing (the New Zealand dollar) to thrash about in a range as it works its way higher."
Picking a wide potential overnight range of US64.65c to US65.65c, Mr Elliott said the New Zealand dollar may " break through the tops and squirt well into the 65s".
"Once we blow through US65c to US65.10c I think you'll see it run like a 'roo in a bushfire."
Meanwhile, the Australian dollar was up to US73.97c from US73.70c at 5pm yesterday.
The euro was at US$1.2218 (US$1.2193 yesterday), and the dollar was buying 107.98 yen (108.30).
On the crosses, the kiwi was buying A87.65c (A87.73c), 0.5307 euro (0.5303), 69.69 yen (70.01), 37.13 pence (37.16), and 0.8234 Swiss francs (0.8208).
The Australian dollar was buying $1.1408 ($1.1399).
The trade weighted index was at 65.31 (65.25), the monetary conditions index was at plus 500 (498), and 90-day bank bills were at 5.30 per cent (5.31).
On the debt market, April 2004 bonds were at 5.17 per cent (5.16), February 2006s were at 5.62 per cent (5.66), and November 2011s were at 5.98 per cent (6.03).
- NZPA
<i>Currency:</i> Kiwi recovers from dip
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