Overseas traders say kiwi dollar ready to fly
Page 1 of 2 .....page 4:00AM Tuesday Mar 31, 2009
By Adam Bennett

Overseas currency traders are tipping the New Zealand and Australian dollars to surge by more than 10 per cent in the next few months, buoyed by a rise in commodity spending as central banks print unprecedented amounts of cash to rescue their economies.

That is despite a local market view that the kiwi's rise is not sustainable.

The New Zealand dollar leaped as much as 11 per cent this month in its best rally since at least 1975 on a trade-weighted basis. It reached a 2-month high of US58.02c on Thursday and ended last week at US57.06c. It closed yesterday at US56.46c.

BNP Paribas and Barclays Capital say the aussie, kiwi and Norway's krone will rise as much as 13 per cent by September.

Credit Suisse Group AG raised its three-month forecast for the aussie last week to US75c from US60c and its kiwi estimate to US59c from US46c.

More here.