NZ dollar surges against greenback

The New Zealand dollar was at its highest level against the greenback in 11 weeks as the local market opened today, building on a surge on the overnight Friday session as risk appetite improved.

Around 8am today the NZ dollar was buying US71.86c, up from US70.73c at 5pm on Friday.

BNZ strategist Mike Jones said market sentiment was cheered overnight Friday by rumours a new, improved rescue package for Greece - which is struggling with debt troubles - was in the pipeline. European equities jumped and appetite for risk rebounded.

Against that backdrop, investors shunned the safe-haven appeal of the US dollar and the yen and dived back into risk sensitive currencies such as the NZ dollar, Mr Jones said.

Overnight Friday the kiwi was the strongest performing currency, at one point reaching a fresh 25-month high against the euro around 0.5330.

By today's local open, the NZ dollar was back down to 0.5274 euro, lower than its 0.5294 at 5pm on Friday.

The kiwi did gain on the Australian dollar, up to A76.72c at 8am from A76.22c at 5pm on Friday, with the NZ dollar also up to 66.81 yen at today's local open from a 5pm Friday level of 66.14 yen.

- NZPA