NZ dollar back over US74c

The New Zealand dollar continued to push higher overnight following yesterday morning's surge when Fonterra lifted its forecast payout to dairy farmers by 19 per cent.

The kiwi reached its highest level against the greenback in almost a fortnight, peaking at US74.17c, according to Reuters data, and easing just slightly to US74.07c around 8am from US73.58c at 5pm yesterday.

The greenback was generally weaker, falling across the board, after a weekend G20 meeting and US jobs data last week did nothing to change the outlook for low US interest rates.

The conviction that interest rates in the US - and elsewhere - will remain low for the foreseeable future and liquidity plentiful boosted demand for non-US dollar currencies and other assets ranging from equities to gold.

Traders also noted the Group of 20 finance ministers and central bankers meeting at the weekend did not dwell on exchange rates, suggesting policymakers were not too concerned with the US dollar's fall, which remains relatively orderly.

The NZ dollar also lifted to 66.63 yen by 8am from 66.37 at 5pm, but was little moved at 0.4938 euro at the local open.

Against the Australian dollar the kiwi was up to A79.73c at 8am from A79.50c at 5pm, while the trade weighted index lifted to 65.93 from 65.72.

- NZPA