The New Zealand dollar may fall from near a seven-week high as concern mounts that Thursday's European leaders' summit in Brussels will fail to deliver a durable solution to the region's debt crisis.
The New Zealand dollar was little changed on 78.67 US cents just before 8am from 78.76 on Monday at 5pm.
The trade weighted index was steady at 71.60.
Equities dropped on both sides of the Atlantic after Chancellor Angela Merkel reiterated Germany's hardline stance, labelling eurobonds and other joint-liability measures "economically wrong, and counterproductive".
Mrs Merkel is under pressure to do more to stem the crisis as leaders prepare to meet at the 20th summit since Greece's financial meltdown rattled the euro.
"The kiwi should go down today - risk is coming off," said Alex Sinton, senior dealer at ANZ New Zealand.
"Early fears of a disappointing European summit are driving a grinding risk-off move in what should otherwise be considered a stable market."
The New Zealand dollar increased to 62.91 euro cents from 62.80 cents on Monday and rose to 78.64 Australian cents from 78.49 cents. It fell to 62.72 yen from 63.24 yen.
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