The Cyprus announcement bringsthe focus back on to Europe, which is still struggling to find common ground on the region's debt crisis.
The kiwi is poised for a 2.7% fall over the week as investors prepare for US jobs figures and general elections in France and Germany at the weekend.
The kiwi fell after weaker-than-expected US private sector jobs figures sapped appetite for riskier assets, ahead of local employment data that may show the NZ jobless rate is unchanged.
The kiwi is poised to have gained 0.5% in April as markets prepare for a likely rate cut by the Reserve Bank of Australia tomorrow and the euro-zone contends with fears of another sovereign debt crisis.
The kiwi gained in local trading despite an attempt to Reserve Bank governor Alan Bollard to talk down the currency when he kept interest rates at their record low level today.
The kiwi rose ahead of the central bank’s review of interest rates and after the Federal Reserve said it saw “moderate” growth in the US economy, though with downside global risks.