The New Zealand dollar has risen to a week high against other major currencies as investors felt more buoyant, underpinning stocks and commodity currencies.
The kiwi touched a week high of US83.41 cents on Tuesday morning and was trading at US83.38c at 8am in Wellington, from US82.77c at 5pm on Monday. The trade-weighted index advanced to 78.20 from 77.76.
Investor risk appetite improved, pushing the Standard & Poor's 500 to a record high, underpinned by expectations that heavily indebted Ukraine would receive international aid, and as German business confidence climbed to the strongest level in two-and-a-half years and Eurozone inflation was revised higher.
Improved sentiment bolstered demand for commodity currencies such as the New Zealand and Australian dollars.
"It seems to be a global risk story," said Peter Cavanaugh, client advisor at Bancorp Treasury Services.
"The world is less scary. There's been quite a mixed bag of data and events lately but the markets in the last 24 hours have grabbed the good stuff and anything that has been ambivalent like what is happening in the Ukraine is being viewed positively because it is progress."
On Tuesday morning, the New Zealand dollar rose to week high of 60.70 euro cents, and was trading at 60.69 cents at 8am from 60.25 cents on Monday.
It advanced to a week high of 50.10 British pence and was trading at 50.08 pence at 8am from 49.74p. It touched a week high of 85.50 yen and was trading at 85.46 yen at 8am from 84.63 yen.
The kiwi weakened to 92.21 Australian cents at 8am from 92.34 cents.
