The New Zealand dollar was back in form today, topping the pre-September level of US43c for the second time in recent days.
"The kiwi's strength continues," Bank of New Zealand forex manager Greg Ball said.
The local unit struck a high of US43.20c today, before settling slightly lower at US42.98c by the market's nominal 5pm close. That compares with kiwi's closing level of US42.60c late yesterday.
The Australian dollar also gained ground today, closing more than half a cent higher at US52.54c (US51.84c).
Mr Ball said the units were benefiting from a renewed interest in Australasian currencies as the global growth outlook improved.
"Both hedge funds and real money funds are very active in buying kiwi and aussie.
"In the New Year, many of the real money funds are believing that the global growth story is not as bad as we might have expected and it has been more of a sneeze rather than (the global economy) catching a huge cold.
"That augurs well for commodity currencies like the kiwi and aussie."
The kiwi was expected to range between US42.75c and US43.50c overnight.
"The trend is definitely upwards and we think that might continue for a while," Mr Ball said.
On the crosses at 5pm the kiwi was buying A81.80c (A82.18c at yesterday's close), 57.05 yen (56.38), 29.84 pence (29.63), 0.7112 Swiss francs (0.7037) and 0.4815 euro (0.4780). The Australian dollar was buying $NZ1.2226 ($NZ1.2169).
The Trade Weighted Index, which measures the kiwi against a basket of currencies from New Zealand's key trading partners, was at 51.84 (51.49 at yesterday's close) after hitting an 18-month high of 52.07 earlier in the session.
Ninety-day bank bills were steady at 4.89 per cent and the monetary conditions index was at minus 695 (minus 728).
On the debt market the March 2002 bonds were firm at 4.76 per cent, the April 2004s were at 5.74 per cent (5.68), the November 2006s were at 6.26 per cent (6.22), and the November 2011s were at 6.65 per cent (6.63).
- NZPA
<i>Currency:</i> Kiwi tops US43c for second time in recent days
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