KEY POINTS:
The New Zealand dollar came close to the US76c level again early today as the greenback slipped against major currencies.
Since being floated 22 years ago the kiwi has only ever been above US76c for a few days earlier this month.
That high flying episode ended with the
Reserve Bank's first post-float intervention in the currency market.
The latest peak for the NZ dollar came around 6am today when the it reached US75.94c, according to Reuters data. By 8am it had eased slightly to US75.87c from US75.54c at 4.30pm yesterday.
The US dollar's widespread easing came as US bond yields continued to retreat from five-year highs hit last week, eroding their appeal to foreign investors.
Against the yen, the kiwi went ever higher, peaking at 93.68, then easing slightly to 93.61 at 8am today, from 93.42 at 4.30pm yesterday.
Despite the yen's mild rise against the greenback overnight, market sentiment remained positioned against the currency as investors continued to borrow it at low Japanese interest rates in order to buy higher-yielding currencies.
Hiroshi Watanabe, Japan's vice finance minister, said Tuesday he was watching the speculative yen carry trades carefully but said they did not as yet pose a risk to Japan's economy.
The kiwi's performance against the Australian dollar was less impressive, although it did spike briefly to A89.82c, then rapidly retreated and at 8am was buying A89.63c, barely changed from yesterday afternoon.
The ANZ bank said today that the Australian dollar, approaching US85c, was also elevated and while there had not been any hint of intervention by the Australian central bank, any such action should not come as a surprise to markets.
The NZ dollar's cross against the aussie would struggle to go higher in that environment, with A90c out of reach for now.
Against the euro, the kiwi rose to 0.5652 at 8am from 0.5629 at 4.30pm yesterday.
The euro also retreated from a record peak against the yen after data showed a surprising decline in German business confidence in June.
Reuters currency rates:
(8am today)
NZ dlr/US dlr US75.87c
NZ dlr/Aust dlr A89.63c
NZ dlr/euro 0.5652
NZ dlr/yen 93.61
NZ dlr/stg 38.15p
Cross rates:
Australian dollar US84.63c US84.31c
Euro/US dollar 1.3426 1.3423
US dollar/yen 123.35 123.62
- NZPA
