KEY POINTS:
The New Zealand dollar ended another strong week trading above US77c today.
The kiwi hit a 2-1/2 month high against the greenback of US77.50c overnight as it became the centre of attention for investors wanting to rediscover a taste for risk.
It closed on US77.02c, over half a cent above its US76.42c close yesterday.
ANZ bank said the NZ dollar had easily broken through resistance levels to be up against all its major trading partners on strong yield-related buying.
Despite evidence domestic demand was softening, the market was well aware the Reserve Bank was unlikely to be cutting interest rates any time soon considering persistent inflationary pressures.
During its overnight surge, the NZ dollar had dragged the Australian dollar along for the ride, ANZ said. The Australian dollar ended the local session on US90.07c from US89.86c yesterday.
The kiwi still gained half a cent on the aussie, ending on A85.52c from A85.05c at 5pm yesterday.
Against the Japanese currency, the NZ dollar hit a two-month high above 91.20 yen, but closed on 90.41 from 89.62 at yesterday's close.
The trade-weighted index rose 1.3 per cent to 72.31.
Analysts said expectations of more United States interest rate cuts from the Federal Reserve to shield the US economy from housing and credit market woes boosted high-yield currencies.
The dollar steadied against the euro as investors waited for US data to shed more light on the timing of the next Federal Reserve interest rate cut.
Reuters currency rates
(5pm today 5pm yesterday)
NZ dlr/US dlr US77.02c US76.42c
NZ dlr/Aust dlr A85.52c A85.05c
NZ dlr/euro 0.5427 0.5398
NZ dlr/yen 90.41 89.62
NZ dlr/stg 37.89p 37.43p
NZ TWI 72.31 71.79
Australian dollar US90.07c US89.86c
Euro/US dollar 1.4192 1.4158
US dollar/yen 117.36 117.19
- NZPA
