The New Zealand dollar rose more than 1 US cents, climbing back above 80 US cents, after European Central Bank President Mario Draghi said policy makers will do whatever it takes to support the euro, helping stoke risk appetite worldwide.
The kiwi dollar rose to 80.17 US cents, from 79.11 cents at 5pm in Wellington yesterday. The trade-weighted index rose to 72.35 from 71.84.
Draghi told the Global Investment Conference in London yesterday that the ECB is "ready to do whatever it takes to preserve the euro" within its mandate and that he was confident "it will be enough".
Stocks rallied strongly across Europe and the US and so-called growth currencies such as the kiwi, Australian and Canadian dollars advanced at the expanse of so-called safe-havens such as the greenback and the yen.
The New Zealand dollar "took flight as risk appetite surged after supportive comments from ECB President Draghi", said Kymberly Martin, currency strategist at Bank of New Zealand.
"We see near-term resistance at 0.8080, and support at 0.8000."
