10 Jul 2014

NZ dollar up against major currencies

6:17 pm on 10 July 2014

The New Zealand dollar rose against all the major currencies and is hovering just below the post-float high of 88.4 US cents.

Westpac currency strategist Imre Speizer said the Kiwi continued to rise due to the strength of the New Zealand economy and low interest rates in the United States.

"Now the reason why the exchange rate has been strongly lately, and was strong last night and today, continues to be a story of the New Zealand economy doing well, the Reserve Bank hiking interest rates - so our interest rates are now very attractive compared to others around the world, and therefore traders wish to buy our currency," Mr Speizer said.

"Also, it's a story of US dollar weakness, and that was particularly the story last night. We had the minutes of the most recent Federal Reserve meeting ... and those minutes confirmed that the members of the Federal Reserve committee have a fairly mixed view on the economy.

"The economy is seen as nowhere near ready for them to start talking about raising interest rates, and that means that the US dollar will probably also remain weak."

Just after 5pm, the New Zealand dollar was buying: 88.19 US cents, 93.82 Australian cents, 51.4 pence, 0.6461 euro, 89.55 yen and 5.47 renminbi.

Shares up

New Zealand shares also rose on Thursday, with the NZX Top 50 Index gaining 5 points to 5128.

Murray and Co director of wealth management Johnny Cochrane said the sharemarket was little changed, with no major company announcements.

However, Air New Zealand shed 3.5 cents to $2.07.

"Some weakness from Air New Zealand. Looks like Air New Zealand is having a small correction after a very strong run through the latter part of last year and early this year," Mr Cochrane said.

Pacific Edge shares edged up 2 cents to 79 cents while Oceanagold shares gained 6 cents to end at $3.61.