New Zealand dollar rose against its major counterparts on Thursday in Asian trading, after a report showed that the economy escaped recession by growing modestly in the fourth quarter.

The New Zealand dollar strengthened to a 3-week high of 0.7471 against the greenback, after closing at 0.7406 on Wednesday.

The gross domestic product (GDP) of New Zealand grew 0.2 percent in the last quarter of 2010 compared to a contraction of 0.2 percent in the previous quarter, Statistics New Zealand reported.

NZD/USD pair fell to a 6- 1/2 -month low of 0.7121 on March 17, as tensions in Libya pushed up crude oil prices, leading to a sell-off of high-yielding assets.

The central bank of New Zealand lowered the official cash rate by 0.5 percent to 2.5 percent this month, after an earthquake devastated the city of Christchurch in February.

However, New Zealand rebounded from the low reached on March 17, as G-7 nations intervened in the currency markets to weaken Japanese yen, which surged to all-time high of 76.53 against the US dollar, after a devastating earthquake and tsunami struck the country. The kiwi has gained 5 percent so far against the dollar.

NZD/JPY pair climbed to a 9-day high of 60.54 against the yen in Asian trade, after closing at 59.93 on Wednesday.

The kiwi appreciated to a 10-day high of 1.8856 against the euro, after rebounding from a 1-year low of 1.9582 on March 17 against the single currency.

The euro fell after Portugal's Prime Minister resigned on Wednesday as the parliament voted against the budget cuts proposed by his government. This led to the renewed worries on the extent of euro zone's sovereign debt crisis.