Currency: Dollar climbs above US 57c

The New Zealand dollar continued stretching above US57c today for the first time in 10 weeks as investors deserted the US dollar in droves in favour of almost anything else.

By 5pm, the kiwi was at US57.06c - up from US56.52c late yesterday afternoon but below today's high of US57.48c.

Against the aussie, the kiwi was at A80.83c from A81.10c late yesterday afternoon.

A stronger Australian dollar and surging world sharemarkets had helped boost the kiwi, a dealer said.

World share prices had gained on optimism about a long-awaited US bank rescue programme, lifting demand for riskier and higher-yielding currencies.

The US government offered a raft of incentives for private investors to help rid banks of up to US$1 trillion ($1.8 trillion) in toxic assets that plunged the world economy into crisis.

"We're still rather well supported on the back of the switch favouring risk again, and also the strong equity markets and the sale of USD for other currencies," the dealer said.

The kiwi's gains continued a trend lasting three or four days.

Key domestic data this week, including the December quarter current account on Thursday and gross domestic product on Friday, may have some influence on the kiwi.

However, it was offshore events above anything else that were driving the currency, he said.

The yen joined the US dollar in declining broadly today as the global stock market rally reduced the appeal of safe havens.

Currency rates:

NZ dlr/US dlr US57.06c US56.52c

NZ dlr/Aust dlr A80.83c A81.10c

NZ dlr/euro 0.4178 0.4136

NZ dlr/yen 55.77 54.45

NZ dlr/stg 38.90p 38.94p

NZ TWI 56.37 55.88

Aust dlr/US dl 70.58c 69.67c

Euro/US dlr 1.3649 1.3664

US dlr/yen 97.75 96.33

- NZPA