9 Feb 2009

Grim US data causes NZ dollar to rise

9:21 pm on 9 February 2009

The New Zealand dollar is up again after grim economic figures were issued in the United States

After trading at around 51 US cents on Friday evening, the New Zealand dollar rose to around 53.6 US cents on Saturday morning - its highest level in more than a week.

It has since eased and was buying 52.95 US cents on Monday morning.

BNZ currency strategist Danica Hampton says the dollar went up after bleak US jobs data spurred hopes that an economic stimulus package would be passed on Friday.

The Senate is now expected to confirm a $US827 billion rescue package on Tuesday.

Job losses in the United States rose by 598,000 in January - the most since December 1974. The unemployment rate is now 7.6%.

Negotiations will then take place to resolve differences between the Senate bill and an $US819 billion version earlier passed by the House of Representatives.