The New Zealand dollar has risen back above 70 US cents, the highest the currency has been for a month.
The rally comes just hours ahead of the Reserve Bank's latest review of the Official Cash Rate.
The market is split over whether the RBNZ will cut the OCR from 2.25 percent. The Kiwi is trading at 70.20 US cents, compared to 69.20 late on Tuesday afternoon.
There are arguments for and against a rate cut.
The RBNZ could hold steady today as the economy is growing at a reasonable rate. Although inflation is well below the Bank's target range, the recent rise in oil prices will help top push inflation higher.
Any cut to rates could add more fuel to an already hot property market.
But advocates say that despite the rally in oil prices, inflation is well below where the RBNZ wants it to be. The New Zealand dollar is higher than the RBNZ forecast in its last Monetary Policy Statement three months ago.
A majority of analysts expect the Bank will keep rates on hold today, but they believe Reserve Bank Governor Graeme Wheeler will signal that another rate cut is on the cards, possibly in August.
The New Zealand dollar is trading at 93.92 Australian cents. The Reserve Bank of Australia held its cash rate at 1.75 per cent on Tuesday.
The Kiwi is sitting at 48.30 pence and 61.60 Euro cents.