The New Zealand dollar held above 82 US cents and may gain as the nation's relatively attractive yields draw demand for the currency.
The kiwi dollar traded at 82.23 US cents from 82.21 cents in New York on Friday. The trade-weighted index was at 73.38 from 73.39.
The local currency rose to the highest in more than three weeks last week after Reserve Bank governor Graeme Wheeler quashed talk of an interest rate cut and said he wouldn't contemplate intervening in currency markets.
New Zealand 10-year bonds are yielding about 3.52 per cent while comparable 10-year Treasury bonds yield 1.75 per cent, a spread of 177 basis points. The official cash rate was kept at 2.5 per cent last week, versus a Federal Reserve target near zero.
"All up, rising NZ-US yield differentials, coupled with the recent brightening in the global backdrop, reinforces our view the NZD/USD is still a buy-on-dips currency," said Mike Jones, currency strategist at Bank of New Zealand.