The New Zealand dollar closed the week straddling US43c and dealers said there was no reason why it should not push higher next week.
ANZ Bank chief dealer in Wellington Murray Hindley said traders were continuing to buy the kiwi on dips.
It rose as high as US43.23c on Thursday, the same high it hit in early January, and Mr Hindley said if it breached that mark it was likely to test above US43.50c and then look at US44c.
Next week is a busy one for economic data with retail sales, terms of trade, Food Price Index and merchandise trade figures and the kiwi's performance may depend on how the picture of the economy looks after those indicators are out.
There will also be increasing focus on whether the Reserve Bank will leave interest rates unchanged in its Monetary Policy Statement on March 20.
The Australian dollar also finished the week on a relatively buoyant note at US52.52c, just down from its US52.59c opening but up on its US52.38c close on Thursday.
Trade in the Australasian currencies took a back seat yesterday to the yen which experienced its strongest surge against the greenback in two years.
Japanese stocks have soared on the back of hopes of a US-led economic recovery, helping the yen up as much as 3 percent to a peak at 128.0 to the US dollar. Yesterday morning the US dollar was buying 126.92 yen.
The US dollar also hit a six-week low against the euro and a two-month low against the aussie.
The euro eased back to US88.02c from its US88.35c level yesterday morning.
Observers said it might appear perverse that the greenback was weakening when the US economic outlook was so positive. The current psychology in the market was that a US economic revival would lead the world into recovery, offering a golden opportunity to diversify out of US asset markets.
On the crosses the kiwi eased to A81.91c (A82.16c at Thursday's close), while the aussie recovered to $NZ1.2208 ($NZ1.2176).
The kiwi slipped against most major currencies, buying 55.07 yen (56.15), 30.12 pence (30.22), 0.7184 Swiss francs (0.7230), and 0.4886 euro (0.4904).
The trade weighted index was at 51.68 (52.04), the monetary conditions index eased to minus 677 (minus 650), and 90-day bank bills were at 5.20 per cent (5.14).
On the debt market yields rose quite sharply with the April 2004 bonds up at 5.93 per cent (5.88), the November 2006s at 6.61 per cent (6.53), and the November 2011s at 6.89 per cent (6.81).
- NZPA
<i>Currency:</i> Kiwi finishes the week above US 43c
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