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US $1 and NZ dollar coin - Source: ONE News
The New Zealand dollar has regained lost ground against the greenback and strengthened against the euro, as the European currency declined on concerns peripheral euro zone economies could face debt problems similar to those of Greece.
At about 8.00am on Wednesday the Kiwi was buying US70.30c, having 45 minutes earlier equalled the two-week high US70.36c level reached early on Tuesday, according to Reuters data.
The dollar had dropped towards US69.60c in early trading but then climbed out of the hole.
Against the European currency it rose from about 0.5130 at about 11.00pm on Tuesday to be around week-high levels at 0.5170, by the local open, not far off its two-year peak.
BNZ strategist Mike Jones says the Kiwi has taken its cues from offshore, particularly the sharply weaker euro and British pound.
The losses by the pound and euro have dragged the dollar down against the US dollar during the night, but solid demand for the Kiwi, combined with a late rally in commodity prices, helped it recoup its losses, Jones says.
At about 8.00am on Wednesday the Kiwi was up to 46.90p, near last week's post-float high.
Jones says that follows comments from ratings agency Fitch that Britain's credit profile had deteriorated and it was uncomfortable with the British fiscal position.
The New Zealand dollar gained overnight to 63.29 yen at 8am from 62.92 at the local close, despite the safe-haven Japanese currency gaining broadly as Japanese corporates took money back home in the run-up to the March 31 fiscal year-end.
The trade weighted index rose to 65.00.
