Currency: Kiwi stays up against greenback

The New Zealand dollar held near 12-week highs this morning on the back of a spate of optimism about the global economy.

By 8am today the NZ dollar was buying US58.60c, having peaked around US59c early on Friday afternoon.

BNZ Capital currency strategist Danica Hampton said much of the recent strength in the NZ dollar was attributable to an improvement in sentiment toward the global economy.

An improving global outlook and strong gains across equities had seen growth-sensitive currencies such as the kiwi climb against "safe haven" currencies such as the US dollar.

Real money accounts out of Japan had shown a steady and persistent appetite for the NZ dollar, Ms Hampton said.

The NZ dollar had also benefited from a general sense that the New Zealand economy would come out of the global recession in relatively good shape.

The decline in fourth quarter gross domestic product was not quite as bad as expected and data last week suggested the housing market might be stabilising, while New Zealand commodity prices were showing signs of recovery.

The NZ dollar slipped against the European currency to 0.4335 euro at today's local open from 0.4355 at 5pm on Friday, while the kiwi lifted to 58.63 yen from 58.36.

Against the Australian dollar the kiwi was unchanged at A81.85c, while the trade weighted index eased to 58.02 at 8am today from 58.10 at 5pm on Friday.

- NZPA