The New Zealand dollar rose near a three-month high as a European Union meeting of finance chiefs quelled investors' concerns about the region's sovereign indebtedness amid speculation policymakers will make progress towards a deal to prevent a Greek default.
The kiwi rose as high as 81.42 US cents and traded at 80.97 cents at 8.30am from 80.66 cents yesterday. It fell to 62.23 euro cents from 62.56 cents yesterday at 5pm.
Investors were more upbeat about so-called risk-sensitive currencies amid speculation a meeting between EU finance ministers in Brussels would make fresh progress to help resolve the regions sovereign debt crisis as well as Greece's negotiations with private bondholders. The bondholders have made their final offer to the EU and International Monetary Fund, and the parties are close to nearing an agreement where old bonds will be swapped for new securities.
"It is the moves around the euro that will guide the kiwi,'' said Alex Sinton, senior dealer at ANZ New Zealand. ``At the moment the kiwi doesn't have the energy to go through into that 81.50 US cent mark.''
The kiwi last traded above 81.50 US cents in late October.
