5.40pm
The New Zealand dollar pushed to another fresh 6-1/2 year high in today's session after initially being dragged lower by a heavy euro.
At 5pm, the kiwi was buying US68.41c (from US68.15c at 5pm last night), while the Australian dollar was at US77.83c (US77.84c).
The kiwi traded between US67.93c and US68.49c, the latter achieved in the last two hours of today's session being its highest level since June 1997.
On a trade weighted basis, the kiwi was at 67.18 (66.86).
On overseas markets overnight, the kiwi pushed to US68.47c, spurred by positive talk of a free trade agreement with China and US dollar weakness.
BNZ currency strategist Sue Trinh said that talk had lent support to the kiwi as the euro this morning pulled back from the US$1.29 mark to the mid US$1.27 area.
"Through the local session heaviness in the euro weighed on the kiwi and took it down to the day's lows," she said.
Late in the afternoon the kiwi rallied on talk of a massive short covering, pusing it to its new high, Ms Trinh said.
The kiwi had overcome initial weakness, but the question had to be asked how much further the kiwi could go.
"With the euro looking a bit heavy still, the question is, how much further the kiwi can keep going without the euro's support?
"I'd be a bit suspicious about this current move."
Meanwhile, the euro was at $1.2761 (US$1.2845), while the greenback was buying 106.53 yen (106.41).
On the crosses the kiwi was buying A87.89c (A87.58c), 0.5360 euro (0.5306), 72.86 yen (72.60), 36.99 British pence (36.93), and 0.8381 Swiss francs (0.8324).
The monetary conditions index was at plus 642 (618), and 90-day bank bills were at 5.30 per cent (5.28).
On the debt market, February 2006 bond yields were unchanged at 5.45 per cent, and November 2011 bonds were at 5.84 per cent (5.85).
- NZPA
<I>Currency:</I> NZ dollar posts new 6-1/2 year high
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