While the kiwi remains under pressure, it "spent most of the night grinding higher" as investors wagered the rest of the central banking world may follow its lead, Kiwibank trader Mike Shirley said.
Both the European Central Bank and the US Federal Reserve have signalled more easing on the horizon. The Reserve Bank of Australia also left the door open to more cuts this week.
The Australian dollar fell to its lowest level against the greenback in more than 10 years. The Australian dollar was trading at 67.62 US cents at 7:50 am in Wellington. It touched a low of 66.75 cents overnight.
"The RBNZ decision gives markets a reason to ratchet up expectations" for further cuts from the RBNZ, ANZ Bank FX/rates strategist Sandeep Parekh said.
The kiwi was trading at 95.40 Australian cents from 95.46, at 53.15 British pence from 52.53, at 57.58 euro cents from 57.03, at 68.53 yen from 67.87 and at 4.5560 yuan from 4.5056.