Dollar consolidates high

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The New Zealand dollar consolidated at higher levels today and over the week was the best performing in the world, according to BNZ.

The NZ dollar was at US71.52c at 5pm, little changed from US71.48c at 8am and up US71.33c at 5pm yesterday. It has risen from US69.98c last Friday.

"Since this morning we've gone sideways. It is a case of pausing for breath, the kiwi's actually been the strongest performing amongst the major currencies this week," said Mike Jones, currency strategist at BNZ.

He said there was no major data out in the US tonight so the consolidation phase could continue.

"It is just going to be continued sentiment-backed trading on the back of the Greek crisis," he said.

The NZ dollar climbed to a two-year high against the euro on Thursday night, as worries persisted about Greece's debt problems. It peaked at 0.5256 euro early today, according to Reuters data, and by 5pm was 0.5248, up from 0.5199 yesterday.

The latest indication of Greek problems came in a report in which an unidentified Greek official said Greece was increasingly pessimistic about the prospect for receiving assistance at a March 25 European Union summit and may seek International Monetary Fund aid during the April 2-4 Easter weekend.

Against the Australian dollar, the NZ dollar reached a 2-1/2-week high of A77.77c overnight, from A77.28c at the local close, and by 5pm today was at A77.56c. The NZ dollar is trudging away from its lowest level against the aussie in more than nine years, A76.10c, reached a fortnight ago.

It was at 64.68 yen at 5pm from 64.33 yen yesterday.

The trade weighted index rose to 65.93 at 5pm from 65.59 at the same time yesterday.

- NZPA