The New Zealand dollar -- the strongest performing currency with a 1.9 per cent rise last week -- continued its recovery today.
It rose to US62.65c at the close compared with US62.32c on Thursday before the Easter break.
The kiwi also made further gains against the Australian dollar, rising to A84.79c from Thursday's close of A83.39c.
The kiwi has been on a roll as a result of much better than expected retail sales published on Thursday. It showed domestic demand remains buoyant and the prospect of a cut in interest rates is even more remote.
BNZ economists said some analysts were dismissing the retail sales data as an aberration, but they said tomorrow's CPI would be a reality check. The data show inflation rose 3.4 per cent in the March quarter with risks weighted on the upside.
Dealers said a high CPI, reinforced by further petrol price rises today, would dampen hopes of an early easing in interest rates and help keep the kiwi underpinned.
The Australian dollar closed a cent up on Thursday's local close at US73.90c.
The New Zealand trade-weighted index rose to 64.09 from on 63.20 Thursday at 5pm.
The US dollar tumbled against most currencies on a growing view that the Federal Reserve could soon end its tightening cycle and due to nervousness about Iran's nuclear ambitions.
The US currency fell around 1 per cent against the euro and 0.8 per cent versus the yen, despite dollar-positive data that showed more than enough capital flowed into the United States in February to offset its huge trade deficit.
Growing geopolitical tensions over Iran's nuclear programme helped to diminish demand for the dollar and pushed gold prices to a new 25-year high.
Rates:
5pm today 5pm Thursday
NZ dlr US62.65c US62.32c
NZ dlr/Aust dlr A84.79c A83.39c
NZ dlr/euro 0.5110 0.5147
NZ dlr/yen 73.85 73.75
NZ dlr/stg 35.35p 35.45p
NZ TWI 64.09 63.20
Australian dollar US73.90 US72.98c
Euro/US dollar US1.2263 US1.2107
US dollar/yen 117.84 118.36
- NZPA
<EM>Currency:</EM> Dollar continues recovery
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