Tuesday, 5 June 2007

New Zealand dollar continues to climb

Great news for New Zealand travellers and importers... not so good for the country's exporters.

The New Zealand dollar has restarted its climb against the US dollar, hitting a new post-float high today of US 74.94c. The previous post-float high was 74.93c in mid-April.

Some financial commentators believe the NZ dollar could break the 75c mark against the Greenback overnight. When the New Zealand dollar was floated 22 years ago, it was worth just US 44.4c.

The latest rebound is being put down to strong offshore demand for New Zealand's interest rates, which are already the highest in the developed world.

* 6/6 - UPDATE: The Kiwi dollar continues to soar upwards, and was this afternoon trading at US 75.51c. Economists are no longer seeing the rise as a short term trend, with speculation the NZ$ could now trade as high as US 80c over the coming months.

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