The New Zealand dollar gained against most of its trading peers after weak economic figures in Europe and the UK, and rising equity markets stoked demand for so-called risk assets.
The kiwi dollar rose to 84.12 US cents from 84.03 cents at 5pm in Wellington yesterday, having climbed as high as 84.44 cents overnight. The trade-weighted index rose to 77.26 from 76.92.
A gauge of manufacturing in the euro region dropped to a three-month low last month while European unemployment climbed to a record 12 per cent in February and a measure of UK manufacturing output shrank more than expected, weakening the euro and the pound. Key economic news is still pending this week, starting with Australian trade figures today, European Central Bank and bank of England decisions Thursday night and US non-farm payrolls on Friday.
"The data out of Europe and the UK was very poor again," said Stuart Ive, a senior trader at HiFX.
Economists expect the US economy added 190,000 jobs in March and Ive said the biggest risk for the kiwi is a weak number, which would keep expectations of Federal Reserve stimulus in place and weigh on the greenback.