The New Zealand dollar has hit a near two-month high overnight, touching 67 US cents. So far this month, it has risen more than 4 percent.
It has come about because investors have scaled back bets that the United States Federal Reserve will raise interest rates, and they are also more comfortable with what are regarded as riskier currencies, such as the Kiwi.
Bank of New Zealand currency strategist Raiko Shareef said the international market sentiment was likely to have more influence on the New Zealand dollar in the short term rather than whether the Reserve Bank cuts rates again at the end of the month.
"I think really the focus has shifted more to the world and the rest of the spectrum of risk assets, rather than secular New Zealand drivers," he said.
At midday, the New Zealand dollar was steady at around 66.60 US cents.
A new poll of financial analysts by the Reuters news agency is picking further falls for the New Zealand and Australian dollars.
The New Zealand dollar is seen at 62 US cents by the end of the year and at 61 US cents in 12 months.