The New Zealand dollar is heading for a 1.3 per cent weekly gain after a string of upbeat local data heightened investors' anticipation for future interest rate hikes.
The kiwi rose as high as 84.13 US cents, trading at 83.90 cents at 5pm in Wellington from 82.79 cents at the New York close last week and up from 83.77 cents at 8am and 83.24 cents on Thursday.
The trade-weighted index rose to 78.84 from 78.32 on Thursday.
The TWI is heading for a one per cent weekly gain from 78.03 at the New York close last week.
The ANZ Business Outlook on Friday showed business confidence near a 20-year high as firms anticipate strong economic growth.
That followed government figures on Thursday showing a surge in exports to China and a decade-high inbound migration, as well as Fonterra raising its forecast payout to farmers this season.
Traders are pricing in a 96 per cent chance Reserve Bank governor Graeme Wheeler will lift the official cash rate at the March 13 review as he looks to head off future inflation from a rapidly accelerating economy.
"Everyone believes he's going to hike, it's just a question of him signalling how fast future hikes will be," said Imre Speizer, market strategist at Westpac in Auckland.
"There's a chance we could break above 84.30 US cents tonight, and if we do, the next level is 85.50 cents."
The kiwi extended gains against its trans-Tasman counterpart, trading at 93.72 Australian cents at 5pm in Wellington from 93.08 cents on Thursday.
It also climbed to 85.42 yen from 85.23 yen and to 61.21 euro cents from 60.79 cents.
