3:05 PM (NZT) The NZ dollar has seen surprising appreciation over the US dollar throughout the course of the week so far. The initial strength came from the ill founded rumour that the IMF was to provide funding for Italy. The subsequent IMF denial softened the NZD a touch but it been enough to spark stop loss buying from investors exiting sold positions. The next major boost came after the coordinated central bank action to provide cheaper US dollar funding to banks if required. The reaction to this news saw the high set for the week so far. Hopes are still high that Germany and France will be able to cobble together a fiscal integration plan for the EMU and this will calm investor fears. Meanwhile, better than expected economic data in the US, and some success debt auctions for Spain and France have enabled the NZ dollar to hold onto gains for the time being. This “bear market rally” may have further legs in it yet, but the odds are still certainly in favour of a resurgence from the US dollar.
 
The current interbank midrate is:                                                            NZDUSD .7795   
                                                                                          
The interbank range so far this week to date has been:                 NZDUSD .7441 - .7822