The New Zealand dollar rose yesterday in sympathy with a resurgent Australian dollar after an upbeat economic assessment from an Australian central banker.
The Australian dollar rose to US92.55c at 5pm from US91.82c at 8am after a resoundingly upbeat speech that fuelled speculation of an increase in interest rates from the Reserve Bank of Australia's deputy governor, Ric Battellino.
"He's essentially hinting at a new golden era of growth ahead for Australia," said Su-Lin Ong, a senior economist at RBC Capital Markets.
The New Zealand dollar went for a ride higher too, from US72.39c at 8am to US72.84c at 5pm. It was at US72.80c at 5pm on Tuesday.
"If we break the highs from last night around the US72.94c area it will be quite significant," a dealersaid.
The New Zealand dollar lost ground against the aussie to A78.67c at 5pm from A79.07c at the same time on Tuesday.
Trading is expected to be quiet with the Thanksgiving holiday in the United States.
The kiwi reached its lowest level against the euro for about three weeks, dropping to €0.4830 on Tuesday night, and by the local close yesterday was at €0.4859.
It was 64.30 from 64.70 on Tuesday and the trade weighted index was 64.76 from 64.92 on Tuesday.
- NZPA
NZ dollar follows ascent of aussie
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