The kiwi rose as high as $0.8429, its highest since early September, breaking above a previous high of $0.8422 hit last week, a level which had capped gains in previous sessions.

The New Zealand dollar rallied broadly, hitting multi-month highs versus a trade weighted currency basket.

Traders said buying in the euro -- another currency considered to be higher risk -- had boosted the New Zealand dollar, although gains were expected to be capped around $0.8450, as stop-loss orders were suspected above that level.