The New Zealand dollar rose to a four-year high against the yen after the US Federal Reserve cranked up its money printing presses, heightening the appeal of countries offering high interest rates, and as Japan's general election looks set to usher in a new government.
The kiwi rose to 70.50 yen from 69.32 yen, the first time it's climbed above 70 yen since September 2008.
The currency traded at 84.39 US cents at 5pm in Wellington from 84.51 cents at 8.30am, up from 83.90 cents.
The kiwi was strong against the Australian dollar too, pushing on 80 Australian cents and closing the day at 79.97 cents from 79.69 cents yesterday and putting new pressure on exporters to New Zealand's most valuable foreign market.
The Fed ramped up its asset purchase programme with up to $US45 billion in purchases of US Treasuries a month, and will link any future increases in its near-zero benchmark interest rate to bringing the unemployment rate down to 6.5 per cent, the central bank said.
That was yet another confirmation the world is facing an extended period of low interest rates and challenges to inflation-indexing as the primary target for monetary policy.
That stoked demand for assets offering higher yields.
New Zealand's government bond auction of $250 million in two tranches of debt attracted $1.35 billion worth of bids.
The Fed meeting comes ahead of Japan's general election on December 16, which is expected to see the Liberal Democrat Party regain power, and reinstall Shinzo Abe as prime minister.
New Zealand manufacturing figures showed a small contraction in activity last month, as production and new orders slowed down, and analysts are looking towards next week's release of fourth quarter balance of payments and gross domestic product.
The kiwi was unchanged against the euro at 64.50 euro cents. It advanced to 52.30 British pence from 52.07 pence, and climbed to 75.37 on a trade-weighted basis from 74.91.