The New Zealand dollar fell as weaker economic figures in US and Europe weighed on equity markets and eroded investors' appetite for riskier, or higher yielding assets.
The kiwi dollar sank to 81.03 US cents from 81.67 cents at 5pm in Wellington yesterday. The trade-weighted index fell to 72.68 from 73.11.
The kiwi dollar added to its decline yesterday following weak retail sales after the euro zone's industrial production sank the most in more than three years in September and Greece's economy suffered a contraction for the 17th consecutive quarter. Meantime, in the US, Commerce Department data showed that retail sales slid more than expected in October.
"Overnight, the NZD/USD resumed its decline as global risk sentiment stuttered," said Mike Jones, currency strategist at Bank of New Zealand.
"The recent deterioration in the NZ economic backdrop means the NZD/USD is more exposed than usual to any cooling of global optimism."