03.07.201404:50:19UTC+00New Zealand dollar ascends to 2-month peak

The New Zealand dollar climbed to a two-month high after Reserve Bank of Australia Governor Glenn Stevens mentioned the Australian dollar was overvalued.

Kiwi escalated at about 93.50 Australian cents, trading at 93.43 cents, from Wednesday’s 92.58 Australian cents.

In the Australian Conference of Economists, Stevens said its currency was overvalued not just by a few cents and investors were underestimating the likelihood of an important drop in the Aussie at some point.

"The Aussie has just been getting thumped. The tone of New Zealand data is a little better, but it's probably better to sell than to buy on the kiwi/Aussie," said Sam Tuck, Senior FX Strategist at ANZ New Zealand.

The currency increased to 64.21 euro cents, from Wednesday’s 64.01 euro cents. Against the Japanese yen, it also advanced to ¥89.26, previously ¥88.91.