4 Oct 2010

Dollar rises sharply against US currency

6:31 pm on 4 October 2010

The New Zealand dollar has risen sharply, gaining nearly a cent over the weekend.

ANZ chief economist Cameron Bagrie says the lift is entirely due to a weakening US dollar, after the US Federal Reserve governor indicated that the central bank would be "more likely than not" to undertake quantitative easing.

Meanwhile, Mr Bagrie says, some New Zealand exporters are benefiting from a stronger Australian dollar.

The currency gained half a cent since Friday on the expectation that the country's central bank will lift interest rates this week, and again later this year.

At close of NZX trading on Monday the New Zealand dollar was buying 74.23 US and 76.62 Australian.

At midday on Monday the New Zealand dollar - which went as high as US74.62c at one point - was trading at just under 74.5c US and 76.6c Australian.