NZ dollar soars on hopes of Chinese investment

Photo / Martin Sykes

The New Zealand dollar soared yesterday on a report that China's state-owned wealth fund, the China Investment Corp, may have set aside $6 billion to invest in New Zealand assets.

The report by interest.co.nz caught the market at a time when traders holding short positions were nervous.

"The market was short and caught," said Mike Hollows, director of trading at HiFX.

The NZ dollar rose to a three-year high on the trade weighted index and was at 70.17 at 5pm from 69.21 at the same time on Wednesday.

It rose to US80.69c at 5pm from US79.85c at 8am and US79.20c at 5pm on Wednesday.

The currency was last at these levels at the start of the month.

Against the Australian dollar, it rose to A76.17c at 5pm from A75.82c at 8am and A75.56c at 5pm on Wednesday.

It is the highest level against the Australian dollar since February.

The NZ dollar rose to 0.5698 at 5pm from 0.5639 on Wednesday and was up to 65.92 from 64.87. The euro has been weak and the Australian dollar was weaker yesterday.

- NZPA