Apparent reluctance from the European central bank to intervene to support the euro amid Middle East turmoil pushed that currency down, and the New Zealand and Australian dollars followed, setting fresh historic lows.
The euro, closing here at 84.90USc, got within half a US cent of its record low. The Australian dollar, ending at 52.23USc, set a new low at 52.10c.
The kiwi closed on its fresh all-time low of 39.44USc.
The euro fell after European Central Bank President Wim Duisenberg played down the prospects for fresh intervention, saying it would be inappropriate for the Group of Seven industrial nations to step in if external events, such as the Middle East crisis, led to extreme exchange rate volatility.
"There was a lot of pressure coming on the kiwi from the aussie, and it really stems from the Duisenberg comments last night," BNZ forex manager Greg Ball said. "To a certain extent there is an issue with safe haven buying as well, with regard to the problems we are seeing in the Middle East."
People were buying greenback and yen for safety, ignoring smaller currencies like the New Zealand dollar.
"So everywhere you turn there seems to be continued pressure on the kiwi. Today's performance has been weak - any rallies have been sold into strongly, and there is no real good news on the horizon."
BNZ chief dealer Mike Symonds said yesterday's quarterly inflation data at a 10-year high and a further fall in business confidence did not help the kiwi.
- NZPA
<i>Currency:</i> Euro pushes kiwi to fresh low
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