11 Apr 2013

NZ dollar tipped to keep rising

7:51 am on 11 April 2013

Exporters are set to come under further pressure, with the New Zealand dollar forecast to keep rising against the currencies of the country's major trading partners.

The dollar continued to rise above the US85 cent mark on Wednesday and was trading at US85.24 cents at 5pm, up from from 85.17 cents at 8am and 84.86 cents at 5pm on Tuesday.

Analysts say it's on target to test the 1984 post-float high of US88.5 cents which it reached in August 2011.

HiFX corporate manager Alex Hill says moves by Japan's central bank to kickstart its flagging economy have prompted investors to buy New Zealand dollars, where they can get better returns due to relatively higher interest rates.

Last week, Japan's central bank said it would double the supply of the currency in the market.

Mr Hill says the movement of the kiwi against the yen has been phenomenal. Last week it was under 80 yen and rose to 84.47 yen on Wednesday.