14 Aug 2009

NZ dollar at 11-month high against greenback

5:05 pm on 14 August 2009

The New Zealand dollar reached an 11-month high against the US dollar on Friday afternoon.

The kiwi neared US68.3 cents by mid-afternoon, before easing back under US68 cents.

An unexpected fall in American retail sales figures for July put the skids under the US dollar overnight.

The kiwi gained further ground against the Greenback after the release of positive news on New Zealand's economy on Friday morning.

Government figures showed spending in shops rose for the third consecutive month in June.

Figures from the Real Estate Institute show continuing signs of stabilisaton in the housing market.

A speech from Australia's Reserve Bank Governor Glenn Stevens also underpinned the NZ dollar.

Mr Stevens indicated that Australia is likely to be the first Western country to raise official interest rates, which have been universally cut since the recession began.