The New Zealand dollar may trade in a range of 85 US cents and 86 cents today. Photo / File
The New Zealand dollar gained as signs of an improving US economy prompted investors to take on more risk, boosting equity markets and damping demand for gold and silver.
The kiwi rose to 80.86 US cents from 79.20 cents at the 5pm market close in Wellington yesterday. The trade-weighted index
advanced to 74.76 from 73.51 yesterday.
Reports in the US showed retail sales rose at the fastest pace in three months in May and fewer Americans than forecast filed applications for unemployment benefits last week, easing pressure on the Federal Reserve to maintain stimulus measures to bolster the economy.
"There's a slightly better risk tolerance, people are happy to take on risk," said Michael Johnston, senior trader at HiFX. "Maybe the US is going to start tapering."
Traders are looking ahead to next week's meeting of the Federal Open Market Committee and the subsequent media conference by Ben Bernanke for further clarity on the likelihood and timing of the potential reduction in monetary stimulus that the Fed chief mentioned in comments to Congress.
