The New Zealand dollar rose against the currencies of all the country's major trading partners.
Rankin Treasury Advisory managing director Derek Rankin said the outlook for the economy was looking increasingly rosy.
"We've had good data out this week. Obviously Fonterra lifting the payout to farmers by 35 cents pushed the New Zealand dollar up but today we've had the ANZ business confidence numbers, which are surging to a near 20-year high," he said.
The increase in Fonterra's payout is expected to boost the economy by about $600 million and the ANZ survey showed a net 59 percent of firms expect their businesses to perform better, the highest reading since June 1994.
"So good news for the New Zealand economy, good news for the New Zealand dollar, and it reinforces that story that the Reserve Bank will be moving to raise interest rates in March," Mr Rankin said.
Just after 5pm, the New Zealand dollar was buying 83.89 US cents, 93.68 Australian cents, 50.29 pence, 0.6121 euro and 85.41 yen.
Shares stronger
The share market was also stronger, the NZX Top 50 Index rising to a record after gaining 26 points to 4990. That overtakes the previous record set in November.
Hamilton, Hinden, Green director Grant Williamson said a lot of the focus had been on the long-awaited release of software company Diligent's accounts. The last set of accounts it produced was for calendar year 2012.
"It's been a long time coming, the company coming out with some financial figures, so it was good to see," Mr Williamson said.
"It has created a wee bit of buying in the stock."
Diligent said its net profit for calendar year 2013 fell 40 percent to $US6.4 million after its accounting woes cost it nearly $8 million but that sales were up 66 percent.
Diligent shares rose 15 cents to $4.85, Ryman shares gained 20 cents to $7.90 and Hellaby shares climbed 5 cents to $3.15.
