Skyrocketing kiwi reaches three year high above US80c

File photo / NZ Herald

The NZ dollar has reached a three-year high against the greenback as the Australian dollar and euro rise and the US dollar weakens.

The kiwi traded as high as US80.15c in afternoon trading on Thursday but had slipped to US79.98c by 5pm, compared to US79.24c at 5pm the previous day. Yesterday afternoon the kiwi was back above the 80c benchmark at US80.11c.

Daniel Bell, senior dealer at HiFX said: "This is not a kiwi story. This is a US dollar story."

The US dollar touched a three-year low as currency markets bet interest rate rises in the world's largest economy would still be some way off, prompting investors to seek higher yields elsewhere.

The kiwi dollar also rose as the Australian dollar soared to a fresh 29-year high as commodity prices and stocks rose. The Australian dollar surged to US$1.0772 - its highest in 29 years - from US$1.0693 in New York.

Analysts are wondering if the kiwi dollar will eventually test its post-float high of US82.13c.

The kiwi dollar was A74.60c yesterday afternoon from A74.45c at 5pm on Thursday. It was up to €0.5503 from €0.5490 and fell to 65.58 from 65.80.
- NZPA