The New Zealand and Australian dollars were in demand on Thursday with the kiwi storming to a 30-year peak as data showing faster-than-expected economic growth spurred bets of higher interest rates. The Aussie also rose as suggestions of further stimulus for the US economy and a ratings warning on US debt knocked the dollar broadly lower.
The New Zealand dollar vaulted all hurdles to a high of $0.8507, from $0.8393 late in New York, before steadying around $0.8428 in late trade. The kiwi was last at these levels in June 1981 when the exchange rate was managed.
The currency also posted hefty gains on cross rates, jumping as high as 1.25 percent on the day against the euro to a 5.5-year high of NZ$1.6930, before retreating to around NZ$1.6865. The Aussie slid to its lowest in nearly eight-month at NZ$1.2681 on the likelihood that the Reserve Bank of New Zealand (RBNZ) will raise rates faster than its counterpart in Australia.
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