The kiwi rose to 57.12 British pence, the highest since mid-March.
The New Zealand dollar rose to a three-month high against the pound on concern an unstable minority government in Britain will be in a weaker position to negotiate an exit from the European Union and may not be able to hold onto power.
The kiwi rose to 57.12 British pence,
the highest since mid-March, from 56.40 pence late yesterday. The local dollar edged up to 72.24 US cents, and earlier touched 72.30 cents, the highest since late February, from 71.94 cents yesterday.
The pound extended its decline in Asia today to a two-month low against the greenback as Prime Minister Theresa May tries to stitch up her numbers with the help of Northern Ireland's Democratic Unionist Party. Overnight, Moody's Investors Service said Britain's inconclusive election result could delay Brexit, reduce the focus on trimming the budget deficit and erode its Aa1 credit rating.
"The pound is probably looking a little bit over-valued from here," said Mitchell McIntyre, a dealer at HiFX.
"The kiwi dollar is just outperforming. It's a high yielder, it has a strong economy and commodity prices have stabilised."
