NZ dollar tops US80c as greenback weakens

Photo / Dean Purcell

The New Zealand dollar reached a new three-year high against the greenback above US80c today as the Australian dollar and euro rose and the US dollar weakened.

The NZ dollar traded as high as US80.15c in afternoon trading and was US79.98.c at 5pm from US79.50c at 8am and US79.24c at 5pm yesterday.

"This is not a kiwi story. This is a US dollar story," said Daniel Bell, senior dealer at HiFX.

The US dollar was sold across the board and touched a three-year low as currency markets bet interest rate rises in the world's largest economy would still be some way off, prompting investors to seek higher yields elsewhere.

"This is a continuation of a theme we saw last night with risk appetite firmly in play and global equity markets positive," Mr Bell said.

The NZ dollar also rose as the Australian dollar soared to a fresh 29-year high as commodity prices and stocks rose.

The Australian dollar surged to US$1.0772, its highest in 29 years, from US$1.0693 in New York.

Analysts are wondering if the NZ dollar will eventually test its post-float high of US82.13c.

The NZ dollar was A74.45c at 5pm from A74.86c at 5pm, was down to 0.5490 euro from 0.5506, and fell to 65.80 yen from 65.74. The trade weighted index fell to 68.79 at 5pm from 68.72.

- NZPA