The New Zealand dollar rose after weak US data fueled speculation the Federal Reserve will take further steps to stoke the world's largest economy, helping underpin global growth.
The New Zealand dollar rose to 78.11 US cents just before 8am, the first time above 78 cents since May 11, from 77.74 cents at 5pm yesterday. The trade weighted index increased to 70.83 from 70.64.
US consumer prices fell 0.3 per cent in May, the biggest decline in more than three years, while initial jobless claims unexpectedly climbed by 6,000 to 386,000.
That follows a string of weaker-than-expected US data boosting speculation the Fed could act as soon as next week when policymakers meet in Washington to review the US economy. The Dow Jones Industrial Average rose 1.2 per cent.
"The data has heightened the Q3 calls, giving support to stocks and the New Zealand dollar," said Stuart Ive, currency strategist at HiFX.