The New Zealand dollar fell after the Bank of Japan moved to fuel credit growth and as traders worry about emerging markets.
The NZ dollar traded at 82.98 US cents at 5pm from 83.02 cents at 8am, down from 83.46 cents on Tuesday. The trade-weighted index declined to 77.83 from 78.26.
The trans-Tasman currencies weakened against the yen after the Bank of Japan moved on Tuesday to boost its lending programmes to stoke credit growth, prompting Japanese investors to take profits in the two risk-sensitive currencies.
The Kiwi fell to 84.80 yen at 5pm from 85.45 yen on Tuesday.
At the same time, unrest in Ukraine, Venezuela and Egypt has some traders mulling another downturn in emerging markets and Wall Street looks close to ending its recent rally, which would see investors return to backing safe haven assets.
"In the next couple of days there could be a bit more uncertainty," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland.
"It all points to things being a little tentative, and there's a bit of profit-taking going on", which has put pressure on the trans-Tasman currencies, he said.
Traders are awaiting the release of the Federal Reserve's minutes from its last meeting and the latest HSBC China preliminary manufacturing PMI for February on Thursday.
Dairy prices at Fonterra Co-operative Group's online auction fell 1.2 per cent on the smallest volume sold since June last year.
The local currency traded at 92.1 Australian cents at 5pm from 92.08 cents on Tuesday and slipped to 60.29 euro cents from 60.86 cents. It fell to 49.75 British pence from 49.88 pence.
