The kiwi touched 65.74 euro cents and was trading at 65.63 cents at 8am on Thursday in Wellington, from 65.28 cents at 5pm on Wednesday.
It touched 96.52 Australian cents, its highest since the Aussie was floated in 1983, and was trading at A96.38c at 8am from A95.98c. It advanced to US77.69 US cents from US77.53c.
The euro fell to a nine-year low against the greenback after a report showed Eurozone inflation turned negative for the first time since 2009.
That strengthened speculation the ECB will launch a programme of buying government bonds with new money, known as quantitative easing, at its January 22 meeting.
“Euro area inflation fell into negative territory in December, intensifying market expectations that the ECB will adopt outright sovereign bond purchases,” ANZ Bank New Zealand chief economist, Cameron Bagrie, said in a note.
“For New Zealand, prospects for QE from the ECB will accentuate the Reserve Bank’s frustration with the New Zealand dollar.”
The trade-weighted index is now about four per cent above the Reserve Bank’s December projections, Bagrie said. While the New Zealand dollar may weaken against a strengthening US dollar, other crosses are likely to remain up, he said.
Meanwhile, levels above 96 Australian cents were likely to bring out further New Zealand dollar selling, Bagrie said.
“Every cent gain from here gets harder and requires new information on either side of the Tasman to achieve.”
The New Zealand dollar touched a four-month high of 51.51 British pence and on Thursday morning was trading at 51.44 pence from 51.19 pence on Wednesday. The kiwi gained to 92.67 yen from 92.28 yen.