KEY POINTS:
The New Zealand dollar stuck to the comeback trail as it began the last day of the year.
Shortly after 8am, the kiwi had risen to US77.55c from US76.00c late on Friday afternoon. It was a touch firmer against the Australian dollar, at A88.41c from A88.16c.
Since plunging to US66.37c amid world market turmoil in August, the kiwi has peaked above US77c three times.
It hit a five-month high of nearly US79.50c on its third attempt in mid-December and then retreated to US75c before beginning its current attempt.
In contrast to 2006, when the kiwi started at US70c but remained below that point for much of the year, this year the currency was above US70c for most of the period.
Strong world dairy prices and the country's high interest rates have helped buoy the kiwi, which hit a post-float high above US81c in July, prompting the Reserve Bank to intervene to push it lower.
More recently, the kiwi has risen nearly 10 per cent against the greenback since the US Fed began cutting interest rates on September 18, with a further US rate cut predicted in January.
Other currencies have also capitalised on the US dollar's weakness this year, including strong performances from the Aussie and euro.
This morning, the kiwi rose to 38.86 pence from 38.59p on Friday, but softened to 0.5267 euro from 0.5272, and 87.21 yen from Friday's 88.00 yen.
New Zealand markets are closed on Tuesday and Wednesday for the New Year's holiday.
The US dollar slid across the board on Friday as data showing a 9 per cent decline in sales of new US homes last month heightened concern about the economy, putting the greenback on track for its worst week in more than a year.
Instability in nuclear-armed Pakistan after Thursday's assassination of opposition leader Benazir Bhutto was also prompting investors to shed US dollars in favour of save-haven assets such as gold, US Treasuries and the Swiss franc.
- NZPA