KEY POINTS:
The Australian dollar has opened at its strongest level in 23 years, to be within sight of 92 US cents for the first time since 1984.
The currency's rise across the Tasman is linked with expectations that Australian interest rates will climb next month, while in the United States consumer interest rates are tipped to fall.
At 9am today (NZT), the Australian dollar was trading at US91.8c, up from Friday's close of US91.1c.
Bank of New Zealand currency strategist Danica Hampton said continuing US dollar weakness and renewed risk appetite, based on stronger equity market performances, helped high interest rate currencies like the Australian dollar.
"The weaker US dollar theme is likely to continue until the FOMC meeting on Wednesday night," she said.
The US Federal Reserve's Federal Open Market Committee (FOMC) is expected to ease consumer interest rates by a quarter of a percentage point to 4.5 per cent when it meets on October 31.
Conversely, the Reserve Bank of Australia is predicted to raise official interest rates by 25 basis points to 6.75 per cent in November, because of high core inflation figures for the September quarter released last week.
Meanwhile, the New Zealand dollar has strengthened against the greenback and the yen, while easing against its Australian counterpart.
Around 8am today the kiwi was buying US76.73c from US76.38c at 4.30pm on Friday, having moved in a narrow range between about US76.30c and US76.70c overnight Friday.
The NZ dollar was also buying 87.66 yen at today's local open, from 87.30 on Friday afternoon, while against the euro it showed little movement -- from 0.5334 to 0.5329 at 8am today.
Against the Australian dollar the kiwi showed a general downward trend from A83.89c on Friday afternoon to A83.54c at 8am today.
- AAP, NZPA