The kiwi was on track for its biggest daily loss in four years, dropping to $0.6998 in early London trade, with the RBNZ entering an easing cycle.
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The rupee rose by eight paise to close at 63.84 against the US dollar on persistent selling of the greenback by banks and exporters on hopes of foreign capital inflows amidst a strong capital market.
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Yen surged against the dollar on Wednesday after the head of BoJ said the currency was unlikely to fall further because it was already "very weak".
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The rupee gained 14 paise from initial losses to hit day's high of 63.78 against the American currency, on fresh selling of dollars by banks and exporters following a strong opening in the equity market.
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The comments from Haruhiko Kuroda, made to a lower house financial affairs committee, lifted the yen from last week's 13-year trough of 125.86 per dollar.
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