21 Jul 2011

NZ dollar rises further

1:11 pm on 21 July 2011

The New Zealand dollar is continuing to touch new post-float highs against its American counterpart, driven by signs the economy is growing and news Europe may be closer to resolving Greece's debt problems.

The New Zealand currency rose as high as US85.88 cents on Thursday morning before easing back.

ANZ Bank chief economist Cameron Bagrie says the kiwi has risen against all New Zealand's major trading partners because the subdued economic recovery that's underway appears relatively better than most.

However Mr Bagrie says there's a risk that financial markets could drive the exchange rate much too high and choke off activity.

Reuters news agency says there's news France and Germany have agreed a joint position on Greece's debt woes.