The New Zealand dollar climbed to its highest level in more than two months as markets assess the prospects of US president Donald Trump's policy plans and after a court ruling that the UK's Brexit must be triggered by a parliamentary vote.
The kiwi rose as high as 72.77 US cents and traded at 72.39 cents as at 8am in Wellington from 72.44 cents late yesterday. The trade-weighted index rose to 79.09, having earlier touched its high for the year of 79.30, from 78.96 yesterday.
The greenback has been held back by comments this week from US Treasury Secretary nominee Steven Mnuchin that its strength could be a short-term negative for the US economy, while Trump was busy signing executive orders to revive key oil pipeline projects while criticising environmental regulations.
The British pound initially weakened after the UK Supreme Court ruled that the parliament must vote before article 50 can be triggered to pull the UK out of the EU, a step that may slow the Brexit.
Closer to home, Australian inflation data today may give a flavour for New Zealand's figures tomorrow, with both expected to show the impact of higher oil prices.