The New Zealand dollar advanced as investors gained confidence that tensions in Ukraine were easing, stoking demand for risk-sensitive assets.

Savers should expect to feel some relief from next week with economists predicting short-term deposit rates to head up in line with a predicted increase in the official cash rate.

The basic fundamentals of New Zealand's economy do not match those of the Irish and southern European economies, writes Donald Blair.

The Kiwi weakened after Fed minutes of its January meeting showed some officials raised the possibility of rate rises "relatively soon".

The dollar was the weakest performer overnight, after comments by Bill English that the kiwi may be 20% overvalued.

A London-based hedge fund manager says it's only a matter of time before the Kiwi dollar plunges.