The New Zealand dollar rose against most of its trading peers overnight after a contender for Bank of Japan chief said he favoured more stimulus and after Bundesbank chief Jens Weidmann scotched comments that the euro is overvalued.
The kiwi rose to 83.70 US cents from 83.28 cents at 5pm in Wellington yesterday. The local currency jumped to 78.16 yen from 77.02 yen and climbed to 62.41 euro cents from 62.27 cents.
With Asian trading activity curtailed by public holidays throughout the region, the kiwi gained versus the yen after Asian development Bank head Haruhiko Kuroda told Bloomberg that Japan's prolonged deflation "must be eliminated." The yen weakened against the greenback after the comments by Kuroda, who is a candidate for the BOJ job.
Kuroda's comments that he "favours greater stimulus moved dollar-yen and kiwi-yen moved considerably as well," said Stuart Ive, currency strategist at HiFX.
"The Germans made it very clear they don't believe the euro is overvalued" and that helped set "a slight risk-on tone overnight," Ive said.