The New Zealand dollar fell against the euro and the greenback following better-than-expected demand for Spanish and Italian government debt and disappointing US retail sales figures.
The New Zealand dollar fell to 61.88 euro cents from 62.59 cents at 5pm on Thursday. It traded to 62.76 cents on Thursday, the highest since the common currency was released in 2002.
The New Zealand dollar fell to 79.35 US cents from 79.62 cents at 5pm on Thursday.
"We saw debt fears reduced across the euro zone," said Mike Jones, currency strategist at Bank of New Zealand.
"There has been some aggressive kiwi-euro selling, with euro sentiment brightening overnight."
Spanish and Italian borrowing costs declined at auctions, fueling speculation the European sovereign-debt crisis is easing and European Central Bank attempts to boost liquidity are working.
The ECB left its benchmark rate at 1 percent, though it is expected to lower borrowing costs by a further 25 basis points to 0.75 percent by the end of the first quarter, while the Bank of England will keep its main rate at 0.5 percent, according to economists forecast compiled by Bloomberg.
The kiwi weakened against the US dollar after figures showed American retail sales increased 0.1 percent in December, falling short of the 0.3 percent gain forecast in a Bloomberg survey of economists, confirming a slowdown in consumer spending for the start of 2012 in the US.
The kiwi was down 76.8 Australian cents from 77.20 on Thursday, it traded at 51.75 British pence from 51.91 pence and 60.89 yen from 61.14 yen.
The trade-weighted index fell to 70.91 from 71.34.
NZN