Dollar pushes higher

Currency - close

The New Zealand dollar pushed on higher today, particularly against the Australian dollar.

It was strong after the Federal Reserve kept United States interest rates unchanged and reiterated a pledge to keep rates "exceptionally low" for an "extended period".

Also, the euro gained against the dollar on Tuesday after ratings agency Standard & Poor's took Greece off credit watch.

By 5pm the NZ dollar had risen to US71.22c from US70.90c at 8am, which was up from US70.44c at 5pm yesterday. It is near six-week highs.

Against the Australian dollar it traded as high as A77.60c before comments by Reserve Bank of Australia assistant governor Guy Debelle suggested Australian interest rates could rise further, pushed it down to A77.40c. It was A77.52c at 5pm from A76.97c at the same time yesterday.

"The Debelle comments pulled the cross back in aussie's favour," said Imre Speizer, currency strategist at Westpac.

He said many traders held long positions in the Australian dollar and short positions in the NZ dollar so when the NZ dollar began rising generally it rose more on the Australian cross.

"There's nothing macro or fundamental between the two at the moment. It is simply positioning and whether the global backdrop is positive or negative for risk."

The NZ dollar is struggling away from its lowest level in more than nine years against the aussie - around A76.10c - on March 5.

The NZ dollar was little changed against the European currency, edging up to 0.5166 euro at 5pm from 0.5144 yesterday.

It was at 64.19 yen from 63.47 yesterday and the trade weighted index was up to 65.48 from 64.96.

- NZPA