The New Zealand dollar kept its cool yesterday, after positive news for the greenback saw some rival currencies dive for cover.
At 5 pm, the kiwi was at 44.60USc, from 44.57USc at yesterday's close.
Benign United States inflation data, a rising Nasdaq and a very market-friendly first outing by incoming US Treasury Secretary Paul O'Neill had seen the US dollar vault to 18-month highs on the yen and slice about 100 points off the euro overnight.
The aussie was also shaken, opening the local session at 55.12USc, from 55.75USc at Wednesday's close.
The US market had fretted that Mr O'Neill's corporate background would somehow make him sympathetic to industry calls for a weaker currency to help exports.
Instead, he could not have been less sympathetic, saying: "I am in favour of a strong dollar. I can't imagine why anyone would think to the contrary."
Local dealers said the kiwi appeared to be generating its own momentum yesterday, trading in a tight range and pummelling the Australian dollar on the crosses.
- NZPA
<i>Currency:</i> Kiwi rises as others take dive
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