NZ dollar hits fresh post-float high

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The New Zealand dollar rose to a fresh post float high of 84.13 US cents, with the greenback tumbling after ratings agency Moody's Investor Service put the US on review for a possible debt rating downgrade.

The announcement that the US could lose its Aaa rating if lawmakers do not raise the US$14.29 trillion debt ceiling saw the Dollar Index, a measure of the greenback against six major currencies, fall 30 basis points this morning to 74.94.

That saw other major currencies rise as investors abandoned their US dollar positions.

"With Moody's getting more serious about putting the US rating on review the kiwi is getting a fair amount of support by default," said Alex Sinton, a senior dealer at ANZ New Zealand.

The Moody's statement eroded earlier gains in global equities and commodities, which had risen after U.S. Federal Reserve Chairman Ben Bernanke said the central bank is prepared to implement further fiscal stimulus should the world's biggest economy continue to falter.

On Wall Street, the Standard & Poor's 500 Index rose 0.3 per cent to 1,317.73, Europe's Stoxx 600 rose 0.7 per cent to 269.94, and the 19-commodity Thompson Reuters Jefferies CRB index rose 1.4 per cent to 349.17, its highest level in over a month.

Sinton said there was a possibility the kiwi dollar could track even higher today on first quarter GDP data, which is expected to released at 10:45 am.

The market is betting the economy grew at a 0.4 per cent pace in the first three months of the year, a notable achievement given a 6.3 magnitude earthquake which destroyed large parts of Christchurch in February.