KEY POINTS:
The New Zealand dollar forged ahead today to hit a fresh post-float high against a weak US dollar, and rose further against other currencies.
The kiwi recovered from an early retreat this morning to hit a session -- and 22-year -- high of US77.58c, according to Reuters data.
By 5pm, it was at US77.54c against Friday's late afternoon level of US76.92c.
The NZ dollar was also higher against the Australian dollar, at A91.04c from Friday's A90.72c.
On a trade weighted basis it was higher still, at 75.11 from 74.80, showing the kiwi's strength was across the board.
"The New Zealand dollar is likely to remain at lofty levels for at least the rest of this year," Westpac strategist Michael Gordon said.
"We believe the currency's recent strength reflects improved near-term 'fundamentals' as much as demand for yield.
"The world growth outlook has picked up, dairy prices are booming, fiscal spending has increased and the housing market remains perky in the face of higher mortgage rates," Mr Gordon said.
GDP data last week showing the economy grew at 1.0 per cent in the March quarter, its fastest pace in two years, helped underpin the kiwi although it matched expectations.
The kiwi subsequently hit a post-float high on Friday for the third time in a week.
This week is quieter on the data front, with only employment confidence and commodity prices of note.
The yen stayed near a four-and-a-half-year low against the US dollar and an all-time low versus the euro today after the Bank of Japan's tankan business sentiment survey supported the view that the central bank will raise interest rates only gradually.
However, the Japanese currency quickly recovered early tankan-led losses as investors were careful about selling the yen too much as many US players were away for a holiday-shortened week in the United States.
US markets will close on Wednesday for Independence Day.
Investors have shunned the US currency after the Federal Reserve left benchmark interest rates unchanged last week and said core inflation had eased a bit, boosting the view that overnight rates will remain at 5.25 per cent for some time.
Rates:
5am today 4.30pm Friday
NZ dlr/US dlr US77.54c US76.92c
NZ dlr/Aust dlr A91.04c A90.72c
NZ dlr/euro 0.5728 0.5685
NZ dlr/yen 95.34 94.93
NZ dlr/stg 38.59p 38.42p
NZ TWI 75.11 74.80
Australian dollar US85.18c US84.78c
Euro/US dollar 1.3534 1.3437
US dollar/yen 123.01 123.43
- NZPA