18 Jul 2013

NZ dollar rise against Australian predicted to continue

2:22 pm on 18 July 2013

A currency strategist is predicting the New Zealand dollar will rise to 88.5 Australian cents by the end of the year and could even go as high as 92 cents.

At midday on Thursday the dollar was trading at 85.6 Australian cents, down from the five-year high of 86.3 cents it reached last Friday.

Bank of New Zealand currency strategist Mike Jones says his prediction for the June quarter of 83.5 Australian cents had once looked "punchy" but it was achieved and then some.

Mr Jones says almost all economic indicators favour New Zealand over Australia at present so the kiwi's rise is likely to continue.

He says the New Zealand dollar was trading below 79 Australian cents in mid-March.