The New Zealand dollar pushed towards US68c today as it tested new 6-1/2-year highs.
It closed on US67.90c, well up from yesterday's level of US67.12.
The Australian dollar was similarly strong at US77.63c against its US76.75c close yesterday.
The local currency, which last year soared 25 per cent, has already risen 3 per cent in the first week of 2004 against the US unit.
Dealers said the main impetus came from the euro after European Central Bank President Jean-Claude Trichet gave the green light for the single european currency to go higher.
He said that the euro's recent record-busting rally against the dollar was hurting exports from the euro zone.
But he added that growing global demand should mitigate the impact of the euro's rise, which makes European exports more expensive.
Mr Trichet said risks to economic recovery from a soaring euro were limited, defying German-led calls for a rate cut.
Currency markets took Mr Trichet's message to mean the ECB was not worried about the euro at its present level.
"He showed that he was not overly concerned with the euro's rapid appreciation thus far," BNZ strategist Sue Trinh told NZPA today.
"That opened the floodgates to more US dollar selling," she said.
A senior Auckland dealer said much would depend on the latest US jobs data due tomorrow New Zealand time, but even a strong number might not arrest the dollar's slide.
"It doesn't seem to want to stop," he said.
The euro finished here at US$1.2764 from US$1.2697 yesterday. It has gained some 6 per cent against the greenback since December alone.
"To the extent that the kiwi follows the euro's price action, it's well worth watching," Ms Trinh said.
Meanwhile, the US dollar was buying 106.18 yen (106.15).
The kiwi again gained on all the crosses. At 5pm it was buying A87.59c (A87.38c), 0.5321 euro (0.5325), 72.12 yen (71.20), 37.06 British pence (36.95), and 0.8336 Swiss francs (0.8357).
The monetary conditions index was at plus 618 (580), the trade-weighted index was at 66.77 (66.26) -- also a 6-1/2-year high -- and 90-day bank bills were unchanged at 5.37 per cent.
On the debt market, February 2006 bond yields were also unchanged at 5.60 per cent, as were November 2011 bonds on 6.00 per cent.
- NZPA
<i>Currency:</i> Kiwi pushes towards US68C
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