The New Zealand dollar reached its highest level in nearly five months against the greenback, briefly topping US60.50c, as the United States currency fell to a four-month low against a basket of major currencies.
By 8am today, the kiwi was at US60.26c, having climbed from US59.36c at 5pm on Friday.
ANZ bank said a strong US equity market and weak US dollar had been enough to propel the NZ dollar through the key US60c level.
Tentative attempts by the kiwi to top US60.50c early in the week may be stalled by those looking to take advantage of the move above US60c, ANZ said.
US dollar fortunes should help moves higher eventually.
The NZ dollar also strengthened against the Japanese currency to be at 59.44 yen by the local open today from 58.88 at 5pm Friday.
The kiwi eased against the European and Australian currencies to A78.47c at 8am today from A78.70c at Friday's local close, and to 0.4414 euro from 0.4435. The trade weighted index was 58.42 at 8am today from 58.20 at 5pm on Friday.
The US dollar fell after a better-than-expected US jobs report bolstered hopes the global recession may be easing and dented safe-haven demand for the greenback.
The euro rose to a six-week high above US$1.36 after government data showed US employers cut 539,000 jobs in April, the fewest since October. While still high, that was not as bleak as financial markets had expected.
The jobless rate hit a 25-year peak of 8.9 per cent, tempering some optimism, but a rally in stocks and a bevy of improved global data this week kept risk appetite high.
- NZPA
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