The New Zealand dollar strengthened overnight, reaching its highest level against the greenback in nearly four weeks and getting to a 7-1/2-month high against the euro.
By 8am the kiwi was buying US65.05c, having peaked around US65.20c a few hours earlier, after moving up from US64.35c at 5pm yesterday.
The NZ dollar also peaked around 0.4630 euro and by the local open was at 0.4621, after being at 0.4586 euro at the local close.
In the broader market, the US dollar fell against the euro, and the yen weakened as a rise in oil prices and US stocks reduced safe-haven demand for the yen and greenback.
ANZ said comments from China - the single biggest holder of United States Treasuries - that it would not suddenly change its reserves policy failed to give the US dollar much lift.
Instead, improving euro zone confidence gave the euro a shot in the arm, and the pound went along for the ride. With that, the NZ dollar got pushed higher.
While the National Bank Business Outlook today would give the kiwi something to focus on, a continuation of range trading was likely during the New Zealand session, with large swings during the offshore session, ANZ said.
The NZ dollar rose to a two-week high against the Japanese currency around 62.65 yen, and by 8am was at 62.46 yen from 61.42 at 5pm.
Against the Australian dollar the kiwi was up to A80.49c at the local open from A80.25c. The trade weighted index was 61.24 at 8am from 60.72 at 5pm.
- NZPA
<i>Currency:</i> NZ dollar flies high against greenback
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