The New Zealand dollar fell to the lowest level in about 11 months against the euro as steady economic growth and improving investor confidence in the economic bloc saw its currency strengthen against the greenback.
The kiwi dollar fell to 62.11 euro cents as at 8:30am in Wellington from 62.59 cents late yesterday. The local currency rose to 68.86 US cents from 68.61 cents yesterday.
Germany's ZEW survey of investor sentiment rose to 35.1 in May from 26.3 a month earlier, while European Union gross domestic product growth came in at 0.5 per cent as expected in the first quarter. The euro rose to a five-month high against the greenback amid ongoing uncertainty about the Trump administration's ability to enact policy change and questions about the pace of interest rate hikes by the Federal Reserve, contrasting with more upbeat sentiment for Europe.
"The EUR/USD has risen as doubts on the ability of the Trump administration to push through reforms has increased and the backdrop for Europe looks more stable - both politically the economically," said Con Williams, rural economist at ANZ Bank New Zealand.
The kiwi dollar didn't move much after dairy product prices rose at the GlobalDairyTrade auction overnight, increasing for the fifth consecutive time, amid solid demand for fat products.
