The New Zealand dollar rose against the greenback after the European Central bank confirmed it would buy up three year bonds in the euro zone to help lower member state borrowing costs.
The kiwi recently traded at US80.25c, up from US80.15c in the morning. It was at 72.00 on the Trade Weighted Index against major trading partners' currencies, unchanged from the morning.
HiFX dealer Michael Johnston said we were in a risk on environment and the ECB news helped to remove some uncertainty from the market.
"It should keep the wolf from door for some heavily indebted nations such as Italy and Spain. Markets responded favourably and the kiwi rallied up strongly," Johnston said.
"Tonight those gains could be reversed or reinforced depending on the US nonfarm payrolls out tonight which are always important. The US is very concerned about the high rate of unemployment."
On the crosses, the kiwi recently traded at 77.78 Australian cents, down from AU77.91c. It was at 63.50 euro cents, up from 63.39 euro cents earlier. It rose to 50.35 pence, up from 50.28 pence previously. It was at 63.36 Japanese yen, up from 63.21 yen earlier.
Johnston said that overnight the kiwi could rise if the greenback weakened on disappointing US job market numbers, or be pushed down if the US dollar was stronger in response to improved unemployment figures.
He picked the kiwi could trade between US79.70c and US80.60c overnight.c.
- © Fairfax NZ News