KEY POINTS:
The New Zealand dollar strengthened today to close the week around US78.50c.
The kiwi benefited from news global central banks early yesterday acting in concert to address the global liquidity crisis.
The central banks' credit crunch plan boosted the NZ dollar as it fanned risk appetite and thus carry trade purchases of high-yielding currencies such as the kiwi.
It closed on US78.46c from US78.62c at 5pm yesterday but off its five months' high of US79.36c early yesterday.
US retail sales and producer prices for November beat market expectations and strengthened the view that the US economy is more resilient than previously thought despite a lingering credit squeeze.
That is likely to assist the US dollar but may also help the kiwi, allaying investor fears about investing in risk assets.
Overnight, the kiwi was sold on yesterday's poor retail sales figures.
The NZ dollar firmed against its Australian counterpart to A89.35c at 5pm from A88.90c at yesterday's local close.
Bank of New Zealand currency strategist Danica Hampton said the Australian currency was struggling under the weight of yesterday's mixed employment data and perceptions that Australian interest rates would stay on hold in coming months.
Against the euro, the kiwi lifted to 0.5363 at 5pm from 0.5328.
The trade weighted index rose to 72.87 from 72.63.
Traders remain sceptical the US dollar will extend gains as players remain cautious about the growth outlook and the effectiveness of concerted efforts by major central banks to provide liquidity to combat global credit problems.
"The market will remain unstable, keeping dollar gains limited," a Japanese bank dealer said.
The dollar was weighed by Moody's ratings downgrade of Citigroup, hit hard by its exposure to subprime mortgage defaults. The downgrade stirred risk aversion and offered some support to the yen, which investors have been selling to buy assets in currencies with high interest rates.
Reuters currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US78.46c US78.62c
NZ dlr/Aust dlr A89.35c A88.90c
NZ dlr/euro 0.5363 0.5328
NZ dlr/yen 88.25 87.85
NZ dlr/stg 38.42 38.33p
NZ TWI 72.87 72.63
Australian dollar US87.83c US88.28c
Euro/US dollar 1.4630 1.4724
US dollar/yen 112.43 111.95
- NZPA