The New Zealand dollar fell in local trading and the Australian dollar briefly dipped below parity with the greenback amid growing concerns Greece will have to call another general election.
The New Zealand dollar fell to 78.16 US cents at 5pm from 78.47 cents at 8am, and was down from 78.27 cents at the close of trading in New York on Friday.
The trade weighted index was little changed at 70.40 from 70.43 last week.
The Australian dollar fell as low as 99.97 US cents, the lowest since December 20, as the deadlock in Greek negotiations to form a new government raises fears the Mediterranean nation may be forced out of the Euro-zone.
The Australian dollar traded at $US1.0015 at 5pm.
Last week's Greek general election threw up a hung parliament after the two major parties that brokered its regional bail-out package failed to secure enough support to govern.
If euro states such as Greece don't step into line on budget cuts, Europe's debt crisis may reignite and slow global growth and demand for growth-linked currencies.
"The market has factored in a pretty decent chance of Greece going back the polls in June, and there's a higher risk Greece will exit from the euro," said Mike Jones, currency strategist at Bank of New Zealand.
"The Australian dollar is starting to suffer more than the kiwi on heightened risk aversion."
The New Zealand dollar was unchanged on 78.04 Australian cents from the close of trading in New York on Friday.
The kiwi was almost unchanged at 60.56 euro cents from 60.55 cents last week and little changed at 48.65 pence from 48.66 pence.It was unchanged at 62.53 yen from last week.
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