5.40pm
The New Zealand dollar rose to its highest level in almost three months against the Australian dollar today after the Reserve Bank of Australia left official cash rates there unchanged.
The kiwi closed at 5pm at A88.94c, around half a cent higher than the same time yesterday and its highest level since early March.
Australian GDP data out today showed its economic expansion slowed sharply in the first quarter, rising just 0.2 per cent for annual growth of 3.2 per cent.
ANZ chief dealer Murray Hindley said the outlook for interest rates in Australia where the Reserve Bank left its cash rate unchanged at 5.25 per cent, contrasted with New Zealand where the central bank is expected to lift rates next week and again in July.
The New Zealand dollar eased against the US dollar at US62.83c (from US63.34c at 5pm yesterday) and Mr Hindley said it was something of a toss-up where it headed next. All would depend on US data on Friday. However, the kiwi had a solid base around US62.65c at present but had struggled this morning above US63c.
The US Institute for Supply Management said its index of national factory activity rose in May to beat expectations of a small decline.
The Australian dollar fell to US70.72c from US71.61c yesterday here at 5pm.
Elsewhere, the US dollar was trading at 110.70 yen (109.73), while the euro was buying US$1.2246 (US$1.2204).
On the other crosses, the kiwi was buying 0.5125 euros (0.5189), 34.08 British pence (34.53), 69.60 yen (69.47) and 0.7824 Swiss francs (0.7938).
The trade-weighted index was at 63.84 (64.19), while the monetary conditions index was at plus 456 (483).
On the money market, 90-day bank bill yields were unchanged at 5.99 per cent and in the debt market, February 2006 bonds were at 5.89 per cent (5.90 per cent), July 2009s were unchanged at 6.11 per cent, and April 2013s were at 6.23 per cent (6.24 per cent).
- NZPA
<i>Currency:</i> NZ hits near three-month high vs Aust dollar
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