KEY POINTS:
The New Zealand dollar was comfortably above US76c early today, after a rapid climb on Saturday morning.
The kiwi was buying US76.22c around 8am, having been around US75.20c at 5am on Saturday before starting its rise.
Bank of New Zealand currency specialist Danica Hampton said a solid performance on US stock markets overnight Friday had reinvigorated demand for carry trade currencies.
In carry trades cheaply borrowed yen is used to buy higher-yielding currencies.
Ms Hampton said the NZ dollar had climbed from around 81 yen to above 82 yen, helping underpin the kiwi against the greenback.
Aggressive demand for the NZ dollar was also noted from a couple of US investment banks. By 8am the kiwi was buying 82.40 yen.
The kiwi also strengthened against the euro from 0.5060 at 5pm on Friday to 0.5140 at 8am.
The euro set a record high against the US dollar overnight Friday, but the key US$1.50 level remained out of reach and the currency fell back more than a cent on comments from a euro zone policy-maker.
European Central Bank governing council member Miguel Angel Fernandez Ordonez said he saw a greater-than-expected economic slowdown in the euro zone and there was not enough data to dispel uncertainty about the effects of financial market turmoil.
Against the Australian dollar the kiwi was buying A86.39c at 8am, from A86.25c at 5pm on Friday.
ANZ bank said a clear result in the Australian elections on the weekend should ensure the aussie strengthened today, with the kiwi weakening against it.
- NZPA