15 Jul 2011

NZ dollar eases after reaching new high

5:27 am on 15 July 2011

The New Zealand dollar has slipped from its fresh post-float high on Thursday morning.

The Kiwi hit a high of $US85.7 cents after official figures showed the economy has been growing more strongly than previously thought.

Hints from the US Federal Reserve chair Ben Bernanke on Wednesday that a further round of money-printing could be needed to stimulate the American economy also pushed up the dollar against the greenback.

The dollar was boosted when Statistics New Zealand said the economy grew at a stronger rate over the past six months than previously expected.

Radio New Zealand's economics correspondent says the figures banished any suggestions that the economy went backwards due to the Canterbury earthquakes.

However, the New Zealand dollar eased on Thursday afternoon and at 5pm was buying $US84.2 cents.

The New Zealand exchange rate was floated on 4 March 1985.

report on Checkpoint