The New Zealand dollar climbed against both the US and Australian dollars, reaching a five-year high against the latter.
Bancorp Treasury Services senior client advisor Peter Cavanaugh says a number of factors have combined to push the kiwi higher.
He says global dairy prices were up in the overnight dairy auction, the Reserve Bank of Australia maintained is unlikely to put its interest rates up, where as the New Zealand Reserve Bank has signalled it will next year.
Mr Cavanaugh says globally there has been a shift in investments or cash flow from emerging markets to developed markets.
At about 5pm, the kiwi was trading at 81.86 US cents, 90.35 Australian cents, 49.96 British pence, 0.6026 euro and 84 yen.