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US $1 and NZ dollar coin - Source: ONE News
An in-demand New Zealand dollar has continued to strengthen after the boost it received on Tuesday when softer-than-expected words from Australia's central bank put the timing of the next rate rise across the Tasman in doubt.
The Kiwi also had a little extra help on Wednesday morning when the Federal Reserve kept United States interest rates unchanged and reiterated a pledge to keep rates "exceptionally low" for an "extended period".
The Fed has targeted an overnight bank-to-bank lending rate of between 0% and 0.25% since December 2008.
Interest rates near 0% diminish the appeal of the US dollar
against higher-yielding currencies.
Just after midday the New Zealand dollar was buying US71.19 cents,
up from US70.90 cents in early trade.
Demand locally and offshore during the past 24 hours, specifically
against the Australian dollar, means a steady rise for the NZ
dollar, ANZ bank says in its morning briefing notes.
The reluctant exit by many of short New Zealand dollar/long aussie
positions ensured a spike higher overnight in that cross, ANZ
says.
The Kiwi was at AU77.46 shortly after midday.
The New Zealand dollar is struggling away from its lowest level in more than nine years against the Australian - around AU76.10c - on March 5.
It was little changed against the European currency, edging up to 0.5172 euro at lucnhtime from 0.5144 at the local close.
An apparent solution, or at least solid backstop, to the current
Greece issue had seen the euro return to favour, ANZ says.
The Kiwi was up to 64.30 yen at midday, and 46.73 pence.
