NZ dollar rides global wave

The NZ dollar rose against the greenback as a rally in stocks and commodities eroded the safe-haven appeal of the US dollar.

By 8am the kiwi was buying US72.63c from US71.92c at 5pm yesterday. The NZ dollar was also up to 66.01 yen from 64.89.

BNZ Capital strategist Mike Jones said both the New Zealand and Australian currencies recovered lost ground overnight as upbeat European data and solid gains across equity markets helped risk appetite.

Commodity prices also posted modest gains, and the World Bank raised its forecasts for East Asian growth.

The factors all boosted demand for the NZ dollar, Mr Jones said.

Matters of note for currency markets today included the release of the third quarter Household Labour Force Survey at 10.45am, expected to show unemployment rising.

Reserve Bank Governor Alan Bollard was also due to give a lunchtime speech discussing the similarities and differences between this country and Australia.

The NZ dollar was little changed against the Australian and European currencies at 8am, compared to the local close, buying A79.84c and 0.4893 euro. The trade weighted index was 65.28 at 8am from 64.86 at 5pm.

NZPA