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NZ dollar vs US dollar -
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The New Zealand dollar spurted higher around 8am after Fonterra announced it was increasing its forecast payout to farmers to $6.05 per kilogram of milksolids, from the $5.10 announced in September.
The kiwi had been around the US72.45 cents level when foreign exchange markets closed for the weekend at 11am on Saturday.
Following the Fonterra announcement on Monday the kiwi was up to around US73.40 cents by 8.20am.
The New Zealand dollar also zoomed up from around 65.12 yen shortly before 8am to near 66 yen, from 0.4880 euro to 0.4930, and from AU78.85c to AU79.55c against the Australian dollar.
Even before the payout news, the New Zealand dollar had been up on its level at the local close on Friday evening.
BNZ Capital senior strategist Danica Hampton said the New Zealand dollar spent most of the time overnight Friday in a range between US72 cents and US73 cents.
Non-farm payroll data from the United States disappointed expectations, with the US unemployment rate surging to 10.2%.
The worrisome US data sparked a bout of safe-haven demand, with the greenback and yen initially strengthening, with the kiwi plunging sharply below US72 cents, Hampton said.
But the US dollar strength did not last long. US equity markets managed to eke out gains which helped support risk appetite.
