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New Zealand Dollar Rises To Fresh 5-month High Against US Dollar

4/11/2011 1:01 AM ET

The New Zealand dollar rose to a fresh 5-month high against the U.S. dollar in Asian trading on Monday on the back of higher regional equities and as a report showed that the nation's business confidence rebounded strongly in April.

Meanwhile, the NZ dollar recovered from its early losses against the aussie, euro and the yen.

New Zealand's NZX 50 index gained 10.58 points or 0.3 percent to 3,455.85.

Confidence among New Zealand businesses rebounded strongly in April on the back of better assessment of the economy, the latest monthly survey from Business New Zealand (BNZ) showed today.

A net 14% of respondents expect the economy to be better in a year's time compared with a net 21% expecting a deterioration last month. The March outcome clearly reflected the impact of the February 22 Christchurch earthquake, the survey report said.

"The latest result bespeaks of improving economic activity as the year goes by though it is clear that at the moment while some sectors are doing extremely well others are struggling," BNZ noted.

The New Zealand dollar strengthened to a fresh 5-month high of 0.7843 against the U.S. dollar in the Asian session. If the kiwi gains further, it may likely target the 0.798 level. At last week's close, the kiwi-greenback pair was quoted at 0.7827.

The New Zealand dollar that fell to a 1-week low of 1.3530 against the Aussie and a 5-day low of 1.8533 against the euro in early Asian deals rebounded shortly. As of now, the kiwi is worth 1.3490 against the aussie and 1.8467 against the euro, compared to last week's close of 1.3508 and 1.8503, respectively.

The NZ dollar also recovered from its early losses against the yen. The kiwi-yen pair is now worth 86.50, up from a low of 66.10 hit at 9:10 pm ET. The pair closed last week's trading at 66.32.

Traders now focus on the European session, in which the German wholesale price index for March and the French industrial production for February are slated for release.

There are no major economic reports due from the U.S. today.

by RTT Staff Writer

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