Dollar firms against majors

The New Zealand dollar firmed against major currencies overnight as gains in global stock markets improved investors' appetite for risk.

By 8am today the kiwi was buying US70.61c from US70.14c at 5pm yesterday.

BNZ Capital senior strategist Danica Hampton said the NZ dollar had traded with a softer tone through the first half of the night, slipping to around US69.80c.

But as the night progressed, NZ dollar sentiment improved.

Stronger than expected retail sales in the United States and upbeat comments from Federal Reserve Chairman Ben Bernanke lent support to the notion that the worst of the US recession had passed, said Hampton.

Growing confidence in the US economic recovery helped underpin risk appetite and US equities.

The NZ dollar lifted to 0.4812 euro at 8am from 0.4799 at 5pm, and was up to 64.29 yen from 63.89.

Against the Australian dollar, the kiwi was up to A81.66c at the local open from A81.44c, while the trade weighted index was 64.36 at 8am from 64.03 at 5pm.

The US dollar fell to its lowest level in nearly a year against a basket of currencies as gains in global stock markets reduced the greenback's appeal as a safe haven.

As risk appetite improved, the euro climbed to a fresh 2009 high above US$1.4680.

"The equity markets are doing better, which is driving people into more risky trades," said John McCarthy, director of foreign exchange trading at ING Capital Markets in New York.

- NZPA