The New Zealand dollar stepped up to new multi-week highs, with investors prompted to take on more risk as United States stocks closed the week in positive territory.
By 8am today the kiwi was buying US52.41c from US52c at 5pm on Friday. It reached a month-high around US52.70c on Friday night and remained above about the US52.15c level after that.
ANZ bank said the NZ dollar initially reversed back to previous resistance levels on Friday before leaping in the overnight session towards the next hurdle. A weaker US dollar helped the overall move.
Underlying buying demand for the NZ dollar remained on any dips at this point.
The kiwi reached three-week highs against the Australian and European currencies, getting to A79.90c and 0.4075 euros.
At today's local open the NZ dollar was buying A79.70c from A79.48c at 5pm on Friday, and was at 0.4056 euros from 0.4024.
Against the Japanese currency, the kiwi reached a two-month high near 51.90 yen and by 8am today was at 51.35 yen from 50.76 at Friday's local close. The trade weighted index was 53.52 at 8am today from 53.16 at 5pm on Friday.
The US dollar gave up its gains against the euro in volatile trade as US stocks closed the week in positive territory, prompting investors to take on more risk.
The yen fell against both the greenback and euro, with the euro at its highest in more than two months. The yen was pressured by concerns the Bank of Japan may intervene to weaken its currency.
Overall, the mood was a little more upbeat than in previous sessions, with more positive news about the US banking system prompting investors to pare long positions on the US dollar.
- NZPA
<i>Currency:</i> NZ dollar creeping upwards again
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