3 Apr 2009

Dollar at 11-week high on global recovery hopes

12:43 pm on 3 April 2009

The New Zealand dollar has surged to an 11-week high against the greenback on hopes that the global economy is on the road to recovery.

It peaked at 58.4 US cents about 5am on Friday, and by early afternoon was trading at 58 US cents.

Its rise follows a surge in world equity markets after G20 leaders committed themselves to measures worth $US1.1 trillion to tackle the global economic crisis.

BNZ currency strategist Danica Hampton says the result is that currency market investors have bought growth-senstive currencies such as the New Zealand dollar.

Ms Hampton says the dollar is likely to track between 50 US cents and 60 US cents for the rest of the year.