WELLINGTON (Reuters) - Robust local gross domestic product (GDP) figures propelled the New Zealand dollar <NZD=D4> to a three-week high on Thursday.
The kiwi rose from around $0.6600 to 0.6652 after Statistics New Zealand data showed the economy had posted quarterly growth of 1 percent in the three months ending June, its fastest pace in two years.
The currency later pared its gains to trade around $0.6642.
The result tempered fears that gloomy business confidence, which has sunk to decade-lows, would dampen growth and prompt the central bank to consider an interest rate cut, as signalled in August.
The next business confidence survey will be published on September 26 and the Reserve Bank of New Zealand (RBNZ) will release its official cash rate on September 27.
New Zealand government bonds <0#NZTSY=> eased, sending yields 3 basis points higher along most of the curve.
(Reporting by Charlotte Greenfield; Editing by Eric Meijer)
