The New Zealand dollar rose, as better economic data out of the U.S. and Europe helped spur a rally in commodity prices and the currencies of nations that produce them.
The Thompson/Reuters Jefferies CRB Index, a broad measure of 19 commodities, rose 1.6 per cent to 359.39 after figures showed
US jobless claims fell and unemployment in Germany slipped to a decade-low.
Other figures showed the Chicago PMI manufacturing index was higher than expected last month.
The kiwi dollar rose as demand for the so-called safe-haven currencies, the U.S. dollar and the yen, ebbed.
"Encouraging US and European data inspired optimism in the global outlook, buoying investors' risk appetite and propelling global commodity prices higher," said Mike Jones, currency strategist at Bank of New Zealand, in his morning note.
Commodity linked currencies such as the kiwi and the Australian dollar were "bolstered accordingly."
The kiwi rose to 76.33 US cents from 75.86 cents yesterday, and gained to 66.80 on the trade-weighted index of major trading partners' currencies from 66.63.
It was little changed at 73.63 Australian cents from 73.65 cents yesterday, and rose to 63.32 yen from 62.95 yen.
It was little changed at 53.75 euro cents from 53.72 cents yesterday, and rose to 47.47 pence from 47.19 pence previously.
Still, the kiwi dollar may struggle to extend its gains, traders said.
"People will start stand back and look at how far we've moved from the low," said Alex Sinton, a senior dealer at ANZ New Zealand.
"At 7.5 per cent in two weeks, that's too much for people to chase it further."
The Australian dollar pushed to a fresh post float high against the greenback overnight, and was last trading at US$1.3059 from US$1.0331 yesterday, after a government report showed retail sales increased in February by more than economists had forecast.
Traders will be closely watching for the release of Chinese Purchasing Manager Index for March, which comes out later today.
Manufacturing activity is expected to expand, although the market to see if policy tightening aimed at curbing inflation will have impacted the pace of growth.
The end of March also marked the end of the first calendar quarter.
The kiwi dollar fell 1.3 per cent in the three months from 77.26 US cents, a period which captured the Christchurch and Japan earthquakes and the political turmoil in the Middle East.
The kiwi dollar may trade between a range of 75.95 US cents and 76.45, Sinton said.
NZ dollar rises as global outlook stokes commodities
Photo / Dean Purcell
The New Zealand dollar rose, as better economic data out of the U.S. and Europe helped spur a rally in commodity prices and the currencies of nations that produce them.
The Thompson/Reuters Jefferies CRB Index, a broad measure of 19 commodities, rose 1.6 per cent to 359.39 after figures showed
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