The New Zealand dollar hit a record-high versus the euro and a multi-month high against the greenback after central banks in Europe, England and China eased borrowing costs on concerns about the global outlook.
The New Zealand dollar rose as high as 64.99 euro cents, the highest since the 17-nation currency entered circulation in 2002. It traded at 64.85 euro cents at 8am up from 64.01 cents yesterday at 5pm. The kiwi climbed to a fresh two-month high 80.71 US cents, and traded at 80.35 cents at 8am up from 80.21 cents yesterday.
Europe's shared currency weakened against higher-yielding peers including the kiwi after the European Central Bank cut its key interest rate by 25 basis points to a record-low 0.75 per cent and reduced its deposit rate to zero for the first time.
China unexpectedly cut its key interest rate for the second time in a month and the Bank of England raised its asset-purchase target by 50 billion pounds to 375 billion pounds.
"All of this is good stuff for the kiwi against the euro which has well and truly smashed up to a new high," said Dan Bell, currency strategist at HiFX. "The New Zealand dollar will continue to rise against the euro and the pound - whilst we are not firing up all cylinders we are outperforming most developed countries."
