NZ dollar higher

The New Zealand dollar rose to a 5-1/2 year high against the euro, as worries about the euro zone debt crisis weighed on the European currency.
The kiwi also pushed higher against the US dollar which was weakened by the possibility the US Congress will fail to raise the Government's statutory borrowing limit in time.
The NZ dollar rose toward 0.6 euro around 8am today from 0.5943 at 5pm on Friday, and was up to US84.61c at 8am from US84.23c.
BNZ currency strategist Mike Burrowes said the outperformance of the NZ dollar on Friday night was partly due to rising commodity prices, as well as to the weak US dollar.
On the crosses, the kiwi's standout performance was against the Australian dollar, with that move higher supported by a sharp narrowing in three year interest rate differentials between this country and Australia.
The NZ dollar was around an 11-month high at A79.48c at 8am today from A78.48c at 5pm on Friday, while rising to 66.91 yen from 66.71. The trade weighted index rose to 73.21 from 72.66.
Westpac said its prediction that the Reserve Bank of Australia would lower interest rates was a factor in the direction of the Australian dollar.
ANZ bank said the level of the NZ dollar was starting to affect businesses, and while evidence for the impact was only anecdotal for now, it would only be a matter of time before it flowed through to official reports.