The New Zealand dollar propelled to the monthly high against the U.S. dollar today, rising for the second day, as the stock marked continued to grow globally, improving the appeal of the higher yielding currencies.

The Australian counterpart of the NZD also rose today against the other major currencies but not at such a fast pace as the New Zealand dollar. The commodity price also went up significantly yesterday, increasing the competitiveness of the regional exporting economies. Yesterday the Reserve Bank of New Zealand decreased the official cash rate to the record low 3 percent (from 3.5 percent) and said that the rate reduction pace will slowdown.

The New Zealand currency also rose for a second day against the Japanese yen, reaching the 2-month high against it, as the risk-aversion declined significantly yesterday on the global economic optimism. The kiwi (as the NZD is sometimes called) advanced for the fourth day against the Aussie today.

Some analysts believe that it’s only a temporary correction from the pessimism that ruled the markets during the last several months. Banks’ shares are rising so are the other equities and it’s natural for the investors to dump the low-yielding yen and dollar for the more promising currencies. The short-term outlook for the Australian and New Zealand dollars is bullish.

NZD/USD rose 0.5184 to 0.5241 as of 9:18 GMT today after reaching as high as 0.5266 — the highest level since February 13. NZD/JPY went up from 50.64 to 51.52 with a daily maximum at 51.84 — the highest since January 12. AUD/NZD fell from 1.2555 to 1.2546 with the daily minimum at 1.2499 — the lowest level since February 19.