The New Zealand dollar dropped below 62 euro cents for the first time in more than a week on renewed optimism Europe's sovereign debt crisis may be contained.
This followed successful sales of French and Spanish government bonds.
The New Zealand dollar was trading at 62.01 euro cents just before 8.30am, up from an overnight low of overnight low of 61.96 cents and 62.37 cents at 5pm on Thursday.
The kiwi was little changed at 80.23 US cents from 80.19 cents.
The euro rallied after French borrowing costs declined as the nation sold 7.97 billion euros in its first sale of medium and long term debt since losing its AAA rating from Standard & Poor's last week.
Spain sold 6.6 billion euros of bonds, exceeding the maximum 4.5 billion euro target set for the auctions. It issued debt due in 2022 at an average of 5.4 percent, down from 6.9 percent in November
"The euro had a very good night with the market focusing on good bond sales," said Stuart Ive, currency strategist at HiFX.
"The yield falling shows there is more resistance in euroland - it was the first real test after the downgrades."
The kiwi immediately fell against the greenback on Thursday after the Consumer Price Index unexpectedly dropped 0.3 percent in the December quarter, taking annual inflation to 1.8 percent.
The New Zealand dollar rose to 61.91 yen from 61.65 yen on Thursday and gained to 77.07 Australian cents from 76.95 cents.
The trade-weighted index was down to 71.35 from 71.47.
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