RPT-NZ PM concerned over kiwi strength, can do little

PUTRAJAYA, Malaysia May 6 - New Zealand is concerned over the strength of its currency, but has few tools at its disposal to deal with it, the country's Prime Minister John Key said on Monday.

"We are concerned, it is largely a U.S. dollar story," Key said at a joint press conference with Malaysia's Prime Minister Najib Razak when asked about the strength of the New Zealand dollar <NZD=>.

The New Zealand dollar hit a 15-month high of US$0.7635 on Thursday last week despite the U.S. dollar sliding across the board on expectations that U.S. interest rates would be held low for some time.

"While the New Zealand dollar has appreciated to a very high levels, it is actually consistent with the appreciation that we have seen in the Australian dollar, the South African rand and the euro," Key said.

New Zealand's central bank will issue its official cash rate review on Thursday.

New Zealand markets are closed on Monday for the Labour Day holiday.