2014.09.0105:04:57UTC+00Kiwi climbs as trade stays at 40-year peak

The New Zealand dollar advanced following government data reflected the country’s terms of trade remained at 40-year high in the 2nd quarter, as firmer currency gave cheaper imports and reduced the impact of dropping commodity prices.

The kiwi climbed to 83.73 US cents at 5:00 p.m. in Wellington, higher than Friday’s 83.59 US cents. Against the euro, the currency went up 63.78 euro cents, from Friday’s 63.63 euro cents.

Kiwi also traded at ¥87.23, from Friday’s ¥86.98, and was at 50.44 British pence, from Friday’s 50.36 British pence.

New Zealand’s terms of trade increased 0.3% in the three months through June 30. The currency has been under pressure in the recent months as dropping dairy prices weighed on the economic growth outlook.

"The terms of trade were certainly better than expected, and enough to give the kiwi a little bit of a nudge," said Stuart Ive, Senior Dealer Foreign Exchange at OMF.

"Any rallies in the kiwi against the US dollar for the time being appear to be somewhat limited to the upside," he added.