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NZ dollar vs US dollar -
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The New Zealand dollar strengthened against major currencies as Abu Dhabi's decision to throw neighbour Dubai a $US10 billion ($NZ13.73 billion) lifeline to repay debts slowed safe-haven buying that boosted the United States currency last week.
By 8am on Tuesday the kiwi was buying US72.82 cents, having come within a whisker of US73 cents a little over an hour earlier. At 5pm on Monday it had dipped to US72.18 cents.
ANZ bank says attempts by the New Zealand dollar to move lower on Monday were thwarted by demand just above US72 cents.
The overnight Abu Dhabi rescue package for Dubai ensured the "risk on" switch was flicked lifting the New Zealand dollar briefly to its high, ANZ says.
BNZ Capital strategist Mike Jones says that as demand for riskier assets had improved, investors went back to selling the US dollar and buying growth-sensitive currencies such as the New Zealand dollar.
The kiwi surged from 63.80 yen to 64.60 yen in the wake of the Dubai announcement, paving the way for more broad-based New Zealand dollar gains later in the night, Jones says.
The New Zealand dollar was at 64.55 yen around the local open, and was up to 0.4970 euro from 0.4933 at the local close.
But against the Australian dollar, the kiwi edged lower to AU79.49 cents by 8am. ANZ says an overnight test, and hold, of the aussie against the greenback meant the New Zealand dollar was unable to move towards the AU80 cents level.
The trade weighted index rose to 65.40 at 8am from 65.00 at
5pm.
