The New Zealand dollar, which has reached a post -float high against the Australian dollar and is near a month-high versus the greenback, may extend its gains on speculation drought in parts of the country will prompt another jump in dairy prices at tonight's auction.

The kiwi rose to as much as 96.77 Australian cents, a post-float high, and traded at 96.35 cents at 5pm in Wellington, little changed from yesterday. The local dollar climbed to 75.16 US cents from 75.05 cents yesterday.

The kiwi pared its gains against the Australian dollar after minutes of the Reserve Bank of Australia's last policy meeting showed there was some internal debate about how soon interest rates could be lowered again after the cash rate was cut to a record low 2.25 percent this month. Meanwhile, currency traders say there's a prospect of further gains in prices of dairy products overnight, given drought conditions in the South Island and dry weather in the lower North Island, after whole milk powder soared 19 percent in the previous auction.

"The RBA probably put a bit of a dampener on a March rate cut," said Tim Kelleher, head of institutional FX sales at ASB Bank. "There's strong expectations for the dairy trade. Production numbers are dropping. It should be supportive of the kiwi."

Kelleher says he expects the kiwi to reach between 97 Australian cents and 97.5 cents overnight. Six of 13 strategists and advisers in a BusinessDesk survey today say the kiwi dollar will reach A$1 this year.

The New Zealand dollar rose to 66.15 euro cents from 65.71 cents yesterday, gained to 48.87 British pence from 48.62 pence and gained to 89.11 yen from 88.85 yen. The trade-weighted index was at 77.92 from 77.74 yesterday.