New Zealand’s dollar rose to a one-week high against other currencies after European governments announced they would ease fiscal tightening.
The euro rose to $1.1699 from $1,1899.55 after the European Central Bank announced that it was lowering its benchmark interest rate to 0.5pc.
It is the first time the ECB has lowered its benchmark rate since June.
The euro was also up 0.7pc at $1 in London.
The NZ dollar rose 0.6pc to 89.8p from 89.4p.NZD gained 0.3pc to $US16.84, the lowest since June 1, when it reached its highest since April.US interest rates are already lower than their record lows at the start of the year.
A rise in the dollar against the Japanese yen has raised hopes of a recovery in the country’s sluggish economy.
A rising dollar also has been helping lift exports, which are expected to rise this year.
The country’s economy contracted by a third in the first quarter of the financial year, which ended in June, partly due to a fall in exports.
In its statement, the European Commission said it had raised interest rates to a record low of 0.75pc from 0.65pc on Thursday.
“The move will further stimulate the economy,” it said.
The ECB also raised its benchmark overnight interest rate for the first three months of the new year.