The New Zealand dollar is near a five month high against the US dollar on Friday, driven by America's debt position and reinsurance payments from the Canterbury earthquake.
At about midday on Friday the New Zealand dollar was trading at 79.5 US cents, falling back slightly from the 79.8 US cents it had reached overnight.
Rankin Treasury says the currency is skyrocketing driven by a weak US dollar, with investors nervous about the America's huge debt burden.
Managing director Derek Rankin says the currency has also strengthened against the Australian dollar, euro and sterling, partly because of the billions of dollars of reinsurance payments flowing into the country.
Overseas investors are also buying New Zealand Government bonds, issued to fund the country's debt.
Mr Rankin says strong commodity prices are also helping to drive the New Zealand dollar.
