The New Zealand dollar gained as investors fled the euro after rating agency Standard & Poor's downgraded nine European nations, including regional powerhouse France.
The New Zealand rose to 62.61 euro cents just before 8am from 61.23 cents on Friday and gained to 79.23 US cents from 79.06 cents.
The euro sank as much as 1.8 per cent as investors fled the single currency after S&P downgraded nine European nations, saying it was disappointed with policymakers' efforts to cut a deal that would stave off a regional debt crisis.
France and Austria ratings were cut one level to AA+ from AAA, with negative outlooks. Finland, the Netherlands and Luxembourg kept their AAA ratings they were placed on negative watch. S&P also downgraded Italy, Portugal, Spain and Cyprus by two steps and cut Malta, Slovakia and Slovenia by one level.
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"The New Zealand dollar has been resilient to these reactions from the euro," said Stuart Ive, currency strategist at HiFX. "We are reacting with it but we are coming back a lot quicker."
Greece's public debt has been one of the region's major problems, and talks between the Mediterranean nation's government and its private sector creditors has reportedly stalled as the regions leaders struggle to keep the debt crisis intact. Speculation is growing that Greece may have to exit single currency if it defaults on its debt.
"I don't think the Greeks are a total lost cause as of yet, but the European Union wouldn't be totally concerned if they defaulted left the euro," Ive said.
A heavy week of data kicks off with the December Food Price Index today, with the New Zealand Institute of Economic Research's quarterly survey of business opinion tomorrow and fourth-quarter consumer price index on Thursday.
Markets will be closed in the US on Monday due for Martin Luther King Day.
The kiwi rose to 76.89 Australian cents from 76.66, and gained to 60.89 yen from 60.68. It was at 51.74 British Pence from 51.51 pence on Friday.
The trade-weighted index increased to 71.13 from 70.67.