The kiwi touched a high of 71.36 US cents early this morning, and was trading at 71.03 cents at 8am from 70.82 cents at 5pm yesterday. The trade-weighted index edged up to 75.97 from 75.93 yesterday.
Global stock markets rebounded for a second day as concerns eased about the effect of the Brexit vote, lifting oil prices and boosting demand for higher-risk currencies such as the kiwi.
The prospect of more monetary stimulus following Brexit also helped underpin markets, as Federal Reserve official Jerome Powell said the Brexit vote could slow the US economy, stoking expectations that the Fed may not hike US interest rates this year.
"The recovery continued for risk assets, with the market continuing to reverse the losses seen in the immediate aftermath of the shock UK vote," Bank of NZ currency strategist Jason Wong said in a note.
"A consensus view is emerging that the shock will be isolated to the UK itself, with little spill-over for the rest of the world.
“Central banks will deliver further easing and, in the case of the Fed, will delay any tightening for potentially a long, long time."
Still, Wong said the NZ dollar has more downside than upside risk in the second half of this year and he doesn't expect the recovery in risk appetite to extend much further.
In NZ today, building consent data for May is released at 10.45am and the ANZ business confidence survey for June is published at 1pm.
The NZ dollar declined to 95.48 Australian cents from 95.60 cents yesterday, and slid to 52.88 British pence from 53.09 pence.
The local currency gained to 73.03 Japanese yen from 72.45 yen, and advanced to 4.7128 Chinese yuan from 4.7094 yuan.
It was little changed at 63.94 euro cents from 63.97 cents.
