The Kiwi last traded at US68.19c, up from US67.4c in late trading yesterday as investors' attitude towards risk changed.
"Risk sentiment has clearly turned very positive," Westpac senior currency strategist Imre Speizer said.
Global share markets rallied sharply after Pfizer and BioNTech revealed a breakthrough in the race to find a vaccine for Covid-19.
The drugmakers' announcement that a vaccine had been found to be more than 90 per cent effective built on optimism over Joe Biden's victory in the US presidential election.
Wall Street's blue-chip S&P 500 index was up 2.7 per cent, MSCI's All Country World index was up 2.1 per cent, while Europe's Stoxx 600 closed up 4 per cent, its best day since May.
Capital Economics said the win by US Democrat presidential nominee Joe Biden, and the vaccine news, had given markets a boost.
"While it is hard to judge just how long-lasting the effects of either development will prove, both arguably point to further gains in risky assets against a backdrop of a recovering global economy and continued support from policymakers," Capital Economics said.
Craigs Investment Partners head of private wealth research Mark Lister expects to see a positive response when trading starts on the New Zealand sharemarket at 10 am.
"We will definitely see a rally but I would not get your hopes up for something as significant as we have seen in the United States or Europe," he said.
"Our market will be up but not by the same degree," he said, adding the impact of the virus on New Zealand had not been nearly been as dire as it had been on other countries.
"We have generally held up better than most over the last few months, and lots of our companies are defensive by nature anyway," he said.
Lister expected the stocks that have been savaged by the impact of Covid-19 to rebound, among them being cinema software company Vista, Air New Zealand and Auckland International Airport.
Conversely, those stocks that have benefited from Covid 19, like Fisher and Paykel Healthcare and the defensive stocks such as the property trusts and the power generators, may underperform.
A2 Milk rallied sharply yesterday, along with its 20-per cent owned Synlait Milk, before it went into a trading halt. A2 finished 64c up at $15.45 and Synlait gained 43c to $5.93.
Synlait is expected to make an announcement today, and market speculation is that it plans a capital raising to enable it gear up its manufacturing facilities to cater for a new customer.
The local sharemarket closed at a record high yesterday, the S&P/NZX50 Index finishing 225 points at 12,562.2, in line with strength in other markets post the US election.
