The New Zealand dollar fell against the yen after North Korea fired a ballistic missile over Japan's northern island of Hokkaido, sapping risk appetite. News that a cattle disease had been detected on another three properties also weighed on the currency.
The kiwi was at 78.58 yen as at 5pm in Wellington versus 79.24 yen at 8 am and from 78.96 yen late yesterday. The yen - widely considered a safe haven - jumped to a four-month high against the US dollar in Asian trading. The kiwi was at 72.25 US cents from 72.38 US cents late yesterday.
"It's mostly North Korea but then the cattle disease headlines had an impact," said Westpac Banking Corp senior markets strategist Imre Speizer.
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The missile - the first Pyongyang has fired over Japan's main islands since 2009 - sparked a harsh response from Japanese Prime Minister Shinzo Abe. "This outrageous action of firing a missile over our country is an unprecedented, grave and serious threat that seriously damages peace and security in the region," he said, according to the Wall Street Journal. "We have firmly protested to North Korea."
