WELLINGTON: The New Zealand dollar hit a 5 1/2-month high against the US dollar on Monday, breaking above a key resistance level due to broad demand for riskier currencies.
The kiwi rose as high as $0.8429, its highest since early September, breaking above a previous high of $0.8422 hit last week, a level which had capped gains in previous sessions.
The New Zealand dollar rallied broadly, hitting multi-month highs versus a trade weighted currency basket.
Traders said buying in the euro -- another currency considered to be higher risk -- had boosted the New Zealand dollar, although gains were expected to be capped around $0.8450, as stop-loss orders were suspected above that level.
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