NZ dollar hits 10-week high

By Peter Garnham

Published: March 26 2009 12:01 | Last updated: March 26 2009 22:25

The New Zealand dollar climbed on Thursday as improving risk appetite boosted the appeal of higher-yielding currencies.

Analysts said the continued rally in commodity prices, resilient US equity prices and falling asset price volatility would remain the driving force behind the strength of the New Zealand and Australian dollars.

Late in New York, the New Zealand dollar rose 1.5 per cent to a 10-week high of $0.5747 against the US dollar, while the Australian dollar climbed 0.6 per cent to $0.7016.

The New Zealand dollar outperformed as the country’s current account deficit came in better than expected, widening to 8.9 per cent of gross domestic product in the fourth quarter.

“To the extent that the figures may not have been as catastrophic as some whisper numbers, the New Zealand dollar rallied,” said Christian Lawrence at RBC Capital Markets.