New Zealand’s economy expanded at a faster-than-expected pace in the second quarter, boosting the already strong Kiwi dollar and giving the central bank little scope to cut interest rates from current record levels.

The New Zealand dollar soared to a seven-week high of 75.56 US cents after official data on Friday showed gross domestic product rose a seasonally adjusted 0.7 per cent quarter-on-quarter in the three months ended June 30 – more than the 0.5 per cent rise expected by the market and the central bank.