The New Zealand dollar rose against the greenback overnight, with a positive run on equity markets helping the currency sidestep a fresh bout of euro pessimism.
The kiwi recently traded at US79.94 cents, up from US79.64c at 5pm yesterday. On the Trade Weighted Index of major trading partners' currencies it rose to 72.33 from 72.16.
On Wall Street, the Standard & Poor's 500 Index rose 0.7 per cent to 1373.03, posting its second day of gains after better-than-expected earnings from chipmaker Intel and industrial conglomerate Honeywell International.
The buoyant mood flowed through into currency markets, lifting demand for growth-linked currencies particularly the Australian dollar, which helped boost the kiwi.
"The Australian dollar tracked sideways until early New York session when it surged with US equities," said Imre Speizer, a market strategist at Westpac.
"The short-term uptrends remain intact and the Australian dollar is expected to continue outperforming New Zealand dollar until the cross reaches at least US$1.304."
The aussie recently traded at US$1.0364, its highest level against the greenback since May 2.
The overnight session boost proved enough of a shot in the arm to mute the blow from German Chancellor Angela Merkel's comment that the final shape of the European Union had yet to be determined.
That fuelled concerns of possible member state exits and saw the single currency fall to a session low of US$1.2215 from a peak of US$1.2304, although it pared the decline to recently trade at US$1.2283.
Adding to the euro pessimism, the International Monetary Fund urged the European Central Bank to cut interest rates further and formally start quantitative easing. Last month the ECB cut rates by 25 basis points to 0.75 per cent, a euro-era low.
On the crosses, the kiwi last traded at 77.11 Australian cents, down from A77.23 at 5pm yesterday, and it was little changed at 64.98 yen from 64.95 yen. The New Zealand dollar rose to 65.15 euro cents from 64.81 euro cents, and gained to 51.07 pence from 50.88 pence.
The kiwi may trade between a range of US79.40c and US80.05c, Speizer said, with the bias tipped upwards.