Kiwi hangs on to gains

06:19, Apr 30 2012

The NZ dollar has held overnight gains against the US on ongoing expectations the Federal Reserve will keep interest rates low.

New Zealand is holding up well above the US due to ongoing forecasts that the Fed will keep interest rates extremely low or embark on another round of quantitative easing.

The kiwi recently traded at US82.21c, up from 82.20c at 8am.

HiFX senior currency strategist Dan Bell said the New Zealand dollar strengthened by over 1c on Friday night to a high of US82.30c

"We haven't managed to go any higher today but have managed to hold on to those gains,' said Bell.

Also, better than business confidence numbers influenced the dollar's strength. Business confidence continues to grow, led by a sharp jump in the retail and services sectors, according to the latest National Bank Business Outlook survey.

On the trade weighted index against major trading partners, it was at 72.80, up from 72.22.

On the crosses, the kiwi recently traded at 78.65 Australian cents, up from 78.53c this morning,. It fell to 65.89 Japanese yen from 66.05 in the morning. It was at 62.03 euro cents, down from 62.10 euro cents at 8am and dipped to 50.47 pence from 50.56 pence.

Bell expected the kiwi to trade between US81.85c and US82.40c overnight.