The New Zealand dollar touched a four-month low against the euro after the European Central Bank lifted its inflation forecast, and on optimism Greece will reach agreement with its creditors.
The kiwi fell as low as 63.28 euro cents and was trading at 63.37 cents at 8am in Wellington, from 64.21 cents at 5pm yesterday.
The local currency slipped to 71.46 US cents from 71.69 cents yesterday ahead of the key US employment data tomorrow.
The euro strengthened after the ECB president Mario Draghi yesterday kept policy unchanged but stepped up the bank's inflation projection for this year to 0.3 per cent from zero, pushing German bond yields higher.
Investors are cautiously awaiting the outcome of Greek debt talks ahead of a 300 million euro payment due to the International Monetary Fund this week