WELLINGTON: The New Zealand dollar rallied broadly on Thursday, hitting a 20-month high against the US dollar and a five-year high against the yen, boosted on the view that aggressive monetary easing in Japan would prompt demand for the higher-yielding currency.

The kiwi rose to $0.8579, its highest since August 2011. Versus the yen it rose to around 85.65 yen, its strongest since February 2008.

The Australian dollar also rose against the broadly weaker yen, climbing to around 105.26 yen, its highest since late 2007.