As a result, after the quarter point to a record low of 2.0 percent the New Zealand dollar rose to $0.7351, its highest since May 2015, before settling back to $0.724.
"The RBNZ has made it clear for a long time that it wants to see the kiwi depreciate, sometimes less and sometimes more explicitly," said Ulrich Leuchtmann, currency strategist at Commerzbank. "Only that it does not deliver enough to achieve this."
Along with the Australian dollar, the kiwi has been buoyed by the allure of relatively high bond yields. New Zealand dollar 10-year government bonds have a yield of around 2.1 percent, compared with negative yields in Japan and Germany.
In the European session, sterling hit a one-month low of $1.2936 amid more signs of weakness in Britain's housing market. Volumes were limited but traders said the report from the Royal Institute of Chartered Surveyors added to signs the British economy was slowing, which have weighed on the pound since June's vote to leave the European Union.
Currency markets' broader focus remained on whether U.S. interest rates will rise this year, with traders looking ahead to a number of speeches by Federal Reserve officials culminating in Chair Janet Yellen's August 26 address at the Jackson Hole symposium.