The New Zealand dollar began the New Year by bounding half a cent higher to fresh 6-1/2 year highs today.
It closed on its session high of US66.44c, half a cent higher than its opening and nearly a cent stronger that its US65.62c at the end of 2003.
"Another year, another high," a senior Wellington dealer said. It was the same old story of US dollar weakness against the euro, the Australian dollar and the kiwi, he said.
"The market was thin but it just wanted to sell US dollars."
The Australian dollar finished up at US76.33c compared with its US75.83c opening. It was at its highest since June 1997.
The euro rose to a record US$1.2662 on nagging worries about the gaping US trade balance that characterised its weakness last year.
"This year has begun much the same way that 2003 and 2002 did, and that doesn't look like it's abating any time soon," said BNZ currency strategist Sue Trinh.
The kiwi gained 25 per cent against the greenback in 2003, and more than 20 per cent in 2002.
While it was possible the kiwi could experience a pullback before it pushed on towards US70c in the year ahead, Ms Trinh said, the BNZ remains "very bearish" on the US dollar.
The US dollar closed at 106.95 yen against its 107.03 opening.
On the crosses, the New Zealand dollar was buying A87.04c (A87.47c on December 31) 0.5247 euro (0.5218), 70.01 yen (70.16), 36.97 pence (36.84), and 0.8190 Swiss francs (0.8140).
The monetary conditions index closed at plus 549 (508), the trade-weighted index was at 65.75 (65.29), and 90-day bank bills were at 5.43 per cent (5.37).
On the debt market, February 2006 bond yields rose to 5.70 from 5.62 per cent and November 2011 yields rose to 6.04 per cent from 5.90 per cent.
- NZPA
<i>Currency:</i> New Year sees Kiwi sprint to fresh 6-1/2 yr high
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