Kiwi dollar rises against weaker greenback

The New Zealand dollar rose as the greenback fell broadly after data showed a wider United States trade deficit and weaker consumer sentiment.

The figures reinforced views that the US may return to economic health more slowly than other countries.

By 8am today the NZ dollar was buying US74.33c, up from US73.32c at 5pm on Friday. The kiwi was also up to 66.65 yen at the local open from 66.10, and lifted to A79.62c against the Australian dollar from A79.15c at Friday's local close.

The upswing also took the NZ dollar to 0.4989 euros, the kiwi's highest level against the European currency in more than two weeks, and at 8am the kiwi was at 0.4980 euros from 0.4930 at 5pm on Friday. The trade weighted index lifted to 66.16 from 65.53.

BNZ Capital strategist Mike Jones said a combination of the broad-based weakness in the greenback, and renewed optimism about global recovery, pushed the NZ dollar up against the US currency.

The US dollar ended the week down about 0.5 per cent against a basket of major currencies, its fourth weekly decline in the past five weeks.

A report showing the euro zone may have exited recession in the third quarter, boosted the euro against the greenback and encouraged investors to buy stocks and high-yielding currencies such as the NZ dollar.

- NZPA