The New Zealand dollar hit 87.01 US cents at 2:50pm on Tuesday afternoon as the US dollar weakened following comments from US President Barack Obama that his government's deficit could do serious damage to the US economy.
Bloomberg reported Obama saying the US government's deficit could do serious damage to the nation's economy if a solution was not found soon to deal with the government's debt position.
Following Obama's comments, investors sought alternative investments to the US dollar, which saw demand for the Kiwi and Australian dollar rise, Bloomberg reported.
“There’s definitely been Asian central-bank buying and that’s been one of the significant factors supporting the kiwi,” Commonwealth Bank of Australia's Tim Kelleher told Bloomberg.
(Updates with comment on Kiwi)