The New Zealand dollar rose above 66 US cents for the first time in 6 and a half weeks as reduced volatility in global markets stoked investors' appetite for risk-sensitive assets, pushing up equities and commodity-linked currencies.
The kiwi rose to 66.05 US cents at 8am in Wellington form 65.88 cents yesterday. The trade-weighted index was little changed at 71.15 from 71.17 yesterday.
The Chicago Board Options Exchange's Volatility Index, known as Wall Street's 'fear gauge', fell to its lowest level in seven weeks as investors assess the pace and timing of higher US interest rates, and have fewer qualms about the strength of emerging market economies.
That's helped push up equity markets, with stocks on Wall Street and Europe gaining in the Northern Hemisphere trading session, while rising dairy prices have allayed fears about the strength of New Zealand's economy, paring bets on another rate cut and stoking demand for the kiwi.
See live rates for the NZ-US $ below. Click for more information: