The New Zealand dollar rose as investors pushed the greenback to an eight-week low ahead of a Federal Reserve statement on expectations that US interest rates won't rise until later in the year.
The kiwi rose as high as 77.40 US cents, matching a three-month high touched earlier this month, and was trading at 77.15 cents at 8am in Wellington, from 76.19 cents yesterday.
The trade-weighted index increased to 79.48 from 78.98 yesterday.
The US dollar index, which measures the greenback against a basket of currencies, touched an eight-week low of 96.011 overnight as investors reduce their long positions, which bet the currency will rise in value.
A report showing an unexpected slump in US consumer confidence added to a series of weaker-than-expected US economic data in recent weeks, stoking expectations US interest rates will probably remain near zero until September.