90 seconds at 9am: NZ$ hits highs vs US$ and Euro; Greek fears return; US deflation

Watch on our video page here Watch on YouTube here Bernard Hickey details the key news overnight in 90 seconds at 9am in association with the BNZ, including news the NZ dollar strengthened to new highs against the US$ and Euro overnight. The Kiwi$ rose to a two month high of 71.6 USc and a 2 year high of 52.1 euro cents as our interest rates appeared relatively more attractive than US and European rates.  This followed news that US producer prices fell 0.6%, which was more than expected. This reinforced expectations that the US Fed Funds rate will stay "Exceptionally low" for an "extended period". The makes the NZ$ relatively more attractive, given our rates are expected to start rising from the middle of 2010. The NZ$ also rose vs the euro as fears returned about the Greek situation. German officials said no rescue deal was done for a summit next week. Meanwhile, the Bank of Japan has loosened monetary policy again by doubling a loan programme for banks because of its weak economy This also makes the yen relatively less attractive than currencies like the New Zealand and Australian dollars. The NZ dollar rose to a 2 year high vs the Euro. It is up to 52.1 euro cents from 39 cents a year ago.  This makes life very tough for NZ exporters to the eurozone.