NZ dollar rises to 11-week high

The New Zealand dollar reached its highest level against the greenback in 11 weeks as risk appetite improved, but it ended the day off its best level.

Around 5pm today the NZ dollar was buying US71.60c from US71.86c at 8am, which was up from US70.73c at 5pm on Friday. It traded as high as US71.94c today, its highest level since late January. It is seen as having support at US71.35c and resistance at A71.80c.

The NZ dollar was the best performing currency against the United States dollar during the past week, Westpac said in a commentary.

"We believe the gradual improvement in the New Zealand economy is finally being recognised," Westpac said.

News during the weekend that an European Union support package for Greece had been agreed helped improve investors' appetite for risk.

The euro leaped to its highest level in nearly a month today as investors who had sold bought the currency back after the rescue package was agreed, Reuters reported.

Overnight on Friday the NZ dollar reached a fresh 25-month high against the euro around 0.5330. By today's local close it was at 0.5232 euro from 0.5294 at the same time on Friday.

The Australian dollar was at US93.40c at 5pm today after reaching a five-month high of US93.89c. Demand for the Australian dollar was slightly tempered by a comment from Reserve Bank of Australia assistant governor Guy Debelle that Australian interest rates were a little below average.

The NZ dollar was at A76.63c at 5pm from A76.22c at the same time on Friday, and was at 66.66 yen from 66.14 yen on Friday.

The trade weighted index was 66.00 from 65.82 on Friday.

- NZPA