14 Sep 2009

Dollar hits new high for the year

2:59 pm on 14 September 2009

The dollar has hit a new high for the year against the US dollar, as American investors regain their appetites for riskier investments.

The New Zealand dollar hit a high of 70.88 US cents in New York on Friday evening and at midday on Monday was still trading at just over 70 cents.

The surge was fuelled by positive economic data in the US, which has encouraged Wall Street investors to invest in riskier markets, such as the high-yielding New Zealand and Australian dollars.

Westpac currency strategist Imre Speizer says US investors are still cautious about the outlook, but believe the New Zealand currency will continue to climb as US confidence snowballs.