New Zealand dollar hits new high

The New Zealand dollar reached a 26-year high against the US dollar yesterday in the wake of better-than-expected trade figures.
The New Zealand dollar was worth US$0.8216 in late morning trading, the highest level since the country abandoned exchange rate controls in 1985, allowing the currency to trade freely. The previous post-float high was $0.8215.
The breakthrough to the new high was expected as the New Zealand dollar rose last week on speculation of increased Chinese investment in the economy.
Prime Minister John Key said the kiwi was trading at high levels against the US currency "because of inherent weakness in the US, the size of the deficit in the United States ... and the enormous amount of debt that that economy is producing."
The NZ dollar fell back to around $0.8188 after Key's comments. AP