The New Zealand dollar fell against the US currency on Thursday due to fresh jitters about whether the European Union can solve its debt crisis.
At midday on Thursday the dollar was trading at US77.52 cents, down from US78.45 the previous day.
European and US shares, commodities and gold also fell because of fears that a vote due in the German parliament on extending the bailout to Greece would fail, leading to a Greek default which could trigger a global financial meltdown.
Investors are also waiting for the outcome of a visit by International Monetary Fund officials to Greece to assess austerity measures.
The negative sentiment follows a three-day rally on the markets when investors believed EU nations were making progress with the debt crisis.
BNZ currency strategist Mike Burrows says investors are staying away from risk-sensitive currencies, such as the New Zealand dollar, and the market remains in a holding pattern, waiting for developments on the euro zone debt crisis.
Mr Burrows says comments by Reserve Bank Governor Alan Bollard that the New Zealand dollar is still too high have had little effect on trading.
