The kiwi rose to 63.43 US cents at 8am in Wellington from 63.06 cents yesterday. The trade-weighted index advanced to 69.26 from 68.97 yesterday.
The New Zealand dollar touched its highest in more than three months against the British pound after UK inflation unexpectedly turned negative last month.
The kiwi touched 44.08 British pence overnight, its highest level since June 25, and was trading at 43.78 pence at 8am in Wellington, from 43.61 pence
at 5pm yesterday. The local currency was little changed at 66.71 US cents from 66.62 cents yesterday.
The British pound weakened after a report showed consumer price inflation turned to an annual rate of -0.1 percent last month, missing economist expectations and matching April's record low. That may prompt the Bank of England to hold off raising interest rates from a record low, analysts said.
"UK CPI prices were weak, with a 0.1 percent annual decline," ANZ Bank New Zealand senior economist Mark Smith and senior FX strategist Sam Tuck said in a note. "This saw GBP weaken overall."
ANZ expects the kiwi to trade between 43.40 British pence and 44.40 pence today, although it says the UK currency may be bolstered by upbeat employment data due tonight.
