The New Zealand dollar fell against the euro after European Central Bank president Mario Draghi said the bank was ready to buy bonds of euro zone members, leaving the door open to bail out Spain.
The New Zealand dollar fell to 63.08 euro cents at 8am from 63.47 cents. The kiwi was little changed on 82.14 US cents from 82.06 cents. The trade weighted index decreased to 73.18 from 73.55.
The local currency fell against the euro after the ECB and the Bank of England left interest rates unchanged and Draghi used the press conference to reiterate the central bank's soft macro outlook. Draghi said the shared currency was irreversible and the bank's decision to purchase bonds would help ease tensions.
Equity market on both sides of the Atlantic rallied after the announcement with the Dow Jones Industrial Average climbing 0.6 per cent and Germany's DAX up 0.3 per cent.
"All the focus is on what Draghi said - it was seen as a positive by markets," said Stuart Ive, currency strategist at HiFX. "It looks as if the kiwi has made its lows for the time being with a good rally for the euro following the ECB's comments."