The New Zealand dollar rose after investors regained some confidence when Russian President Vladimir Putin toned down his rhetoric over the Crimean Peninsula, and after Australia's economy grew more than expected in the fourth quarter.
The kiwi rose to 83.94 US cents at 5pm in Wellington from 83.73 cents at 8am, up from 83.64 cents yesterday. The trade-weighted index increased to 78.87 from 78.60 yesterday.
Stocks across Asia followed Europe and Wall Street higher after Russia's Putin told a news conference he saw no need to use military force in Ukraine's Crimea region for now. The prospect of an invasion sapped investors' appetite for risk-sensitive assets.
"The market might try to take it (the kiwi) a bit more to the upside, but it depends on Mr Putin in the near-term," said Imre Speizer, market strategist at Westpac Banking in Auckland. "I've got a slightly positive bias overall."
Westpac's Speizer said traders will be watching US employment figures on Friday in Washington, and they may be weather-affected by the harsh winter conditions. A softer US labour market would support the kiwi against the greenback, he said.
