The New Zealand dollar rose to a five-year high against the yen following the Bank of Japan's announcement last week of much greater quantitative and qualitative easing to end deflation and weaken its currency.
The kiwi rose to 82.61 yen and earlier reached 82.68 yen, the highest since May 2008, from 82.21 yen in New York on Friday. It slipped to 84.13 US cents from 84.31 cents as equity markets fell in the wake of weak US payrolls data.
BOJ Governor Haruhiko Kuroda last week announced plans yesterday to double monthly bond purchases to about 7.5 trillion yen as he seeks to achieve 2 per cent annual inflation in two years.
Billionaire investor George Soros and Pacific Investment Management bond fund manager Bill Gross have both said the plan risks weakening the yen, Bloomberg reported.
"With the BOJ's game changer we can expect more strength in the kiwi against the yen," said Mike Jones, strategist at Bank of New Zealand.