The New Zealand dollar has climbed to an 18-month high against its Australian counterpart.
The kiwi peaked at 80.93 Australian cents on Friday, the highest since August 2011, and traded at 80.81 cents at 5pm in Wellington from 80.31 cents on Thursday.
The currency was unchanged at 84.10 cents from 8am and up from 83.67 cents on Thursday.
New Zealand is becoming a more attractive destination for investors looking for higher yields, with the Reserve Bank looking more likely to hike or maintain rates at current levels, while its Australian counterpart has an easing bias.
That comes as the local economy is set to get a boost from the looming Canterbury rebuild, while Australia's mining boom continues to come off its peak.
The yield on New Zealand's 10-year government bonds is almost 26 basis points higher than its Australian equivalent at 3.77 per cent.
"I really do think the Christchurch rebuild will lead to a rise in rates quicker than other people do," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland.
The kiwi/aussie cross rate was "undervalued", he said.
"I see it heading up towards 85 (Australian) cents," though that's not ASB's official view, he said.
The kiwi dollar climbed to 77.21 yen at 5pm in Wellington from 75.87 yen on Thursday, and increased to 61.78 euro cents from 61.50 cents.
The trade-weighted index advanced to 75.64 from 75.06 on Thursday.
The TWI rose as high as 75.82, and is trading near the 77.17 peak in mid-2007, when the Reserve Bank last intervened.
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