Following the New Year boost to the respective strength of
the New Zealand and Australian dollars, they are now trading
flatly against the world's major currencies as the United
States addresses its looming debt ceiling crisis.
The New Zealand sharemarket roared higher in early trading,
following the lead of Wall Street where stocks surged into
the close after the Federal Reserve pledged two more years of
near-zero interest rates.
The New Zealand dollar has briefly touched a one-year high
against its Australian counterpart and weakened against the
euro, with investors growing increasingly risk averse as poor
economic data keeps coming in the United States.
Getting government spending under control and having a lower
official cash rate were key to getting the value of the New
Zealand dollar back to a sustainable level, Act New Zealand
leader Don Brash said yesterday.