The New Zealand dollar today traded at 12-month highs against the US dollar, apparently reflecting optimism about the "green shoots" of economic recovery.
At lunchtime it touched US69.93c - its highest rate against the US dollar since this time last year - before slipping back to near where it started the day.
It was worth US69.58 at 5pm and US69.60c at 8am. Analysts cited a growing appetite for risk amid perceptions the impacts of domestic and global recession have bottomed out.
As global stock markets and oil prices rose there was reduced demand for safe-haven currencies such as the US dollar and yen. Seen as a safe haven in times of uncertainty, the US dollar tends to fall when investors' risk appetite increases.
The NZ dollar hit a six-year low in early March but has grown about 40 per cent since, helped by overseas investors boosting their exposure to higher-yielding currencies.
On Tuesday it traded within the US69c range, and dropped back to US69.10c around 5pm before strengthening again as overseas transactions picked up, according to Reuters data.
Overnight a rosy global economic outlook fuelled buying in stocks, helping lift gold above US$1000 ($1469) an ounce and oil to more than US$70 per barrel.
The NZ dollar rose fractionally during the day to 0.4804 euro at 5pm, but was still down on yesterday, and was similarly little changed from yesterday's close against the Australian and Japanese currencies at A80.95c and 64.24 yen.
It was worth 42.13 pence against the British pound.
The trade weighted index was 63.84 at 5pm, up from 63.79 at 8am.
- NZPA
NZ dollar high against US
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