The New Zealand dollar firmed with other currencies against the US dollar today as investors feared the onset of a weak dollar policy.
At 5pm the kiwi was buying US63.63c against US63.45c at yesterday's close.
The US dollar fell after a British newspaper reported that Don Evans, a possible successor to US Treasury Secretary John Snow, was likely to favour a weaker dollar.
The Times of London said in an article in its online edition that Evans, a former US commerce secretary, may fit the mould of past Treasury chiefs who have favoured a weaker dollar given his political background.
The newspaper said that in the past 30 years, "those with an industrial or political background...have been quite happy, indeed eager, to see the dollar decline."
"The political-industrial complex likes a lower currency that helps American exporters," the Times said, and added: "Don Evans seems to fit very comfortably into this latter category."
Republican sources said last week that Snow will likely step down in June, and US media such as the New York Times and the Wall Street Journal have recently reported that Evans was a leading contender to succeed Snow.
Local trading was very quiet with both British and the US markets taking a long weekend.
The Australian dollar firmed to US76.08c from US75.83c while the cross rate eased to A83.62c from A83.67c. The TWI eased to 63.15 from 63.23 last night.
Rates:
5pm today 5pm yesterday
NZ dlr US63.63c US63.45c
NZ dlr/Aust dlr A83.62c A83.67c
NZ dlr/euro 0.4968 0.4982
NZ dlr/yen 71.33 71.28
NZ dlr/stg 34.08 34.12
NZ TWI 63.19 63.23
Australian dollar US76.08c US75.83c
Euro/US dollar US1.2808 US1.2745
US dollar/yen 112.09 112.30
- NZPA
<i>Currency:</i> US weakness report pushes Kiwi higher
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