The New Zealand dollar slipped from its recent highs against the greenback, but held onto most of yesterday's gains as global equities continued to recover from their August losses.
The New Zealand dollar recently traded at 85.16 US cents, down from 85.47 cents yesterday, and fell to 72.86 on the trade-weighted index of major trading partners' currencies from 72.95 previously.
Global equities rose for a fourth day as investors appeared to be putting the volatility of August behind them, with increased demand for risk assets such as stocks and commodities.
The primary driver of risk was the release of the minutes from the US Federal Reserve's latest policy session, which fuelled speculation the central bank was preparing to launch a new round of monetary expansion. Data for factory activity in the Chicago region also came in stronger-than-expected.
Europe's Stoxx 600 Index closed 2.9 per cent higher at 237.43, and the Standard & Poor's 500 Index rose 0.5 per cent to 1,218.63 although gains were capped by the US government's bid to block AT&T's $39 billion takeover of T-Mobile USA. Commodities rose 0.5 per cent to 342.57, as measured by the 19-commodity Thompson Reuters Jefferies CRB Index.