Neil Mellor, a strategist with Bank of New York Mellon in London, pointed to sentiment and other more current data that had been more positive in the run-up to the GDP revision. "It tells you a lot about the market's inclination that people are focusing on backward- rather than forward-looking numbers," he said.
"The Federal Reserve will clearly use any sign of weakness as an excuse to maintain the status quo (on rates) and the market wants to use the dollar as a funding currency, hence favoring the yield plays like the kiwi, sterling and others."
The dollar index edged down 0.05 percent to 80.18, not far from a one-month low of 80.075 struck earlier in the day. Against the euro, the greenback weakened to trade above $1.36.
While a lot of market attention has focused on sterling and the prospect of higher UK interest rates at the end of this year or the beginning of next, New Zealand policymakers have already been raising rates for months. The RBNZ's cash rate is currently at 3.25 percent, among the highest in the developed world and the kiwi has become a beacon to yield-seeking investors in response, quietly assembling an almost 7-percent gain since the start of this year.
The Kiwi dollar traded at $0.8773 on Friday, having peaked at $0.8795, just half a cent off the 2011 high of $0.8842. That is the strongest the currency has been since it was floated in 1985.
--By Reuters. For more information on currencies, please click here.