The kiwi was little changed at 84.15 US cents at 8am in Wellington from 84.13 cents at 5pm yesterday.
The New Zealand dollar weakened overnight as investors favoured less risky currencies amid rising political uncertainty ahead of a potential US government shutdown as Congress fails to reach agreement on the budget.
The kiwi slipped to 82.61 US cents from 82.80 cents at the New York close and 82.90 cents
at the 5pm Wellington close on Friday. The trade-weighted index fell to 77.05 from 77.30 on Friday.
All eyes are on the partisan political brinkmanship in the US Congress as the deadline for a budget deal to avert a government shutdown at midnight on Monday in Washington is closing in rapidly. Over the weekend, Republicans in the House rejected an emergency spending bill approved by the Senate. Failure to pass a bill before the new financial year starts on Tuesday may result in a government shutdown.
"Investors are now holding their breath to see if a partial US government shutdown can be averted. At this stage, it looks as if we will get a shutdown of some sort," Mike Jones, currency strategist at Bank of New Zealand, said in a note. "With markets nervous and risk aversion on the ascendancy, the New Zealand dollar may find it tough going this week."
Data scheduled for release in New Zealand today is expected to be upbeat, Jones said. Building permits for August will be published at 10:45am and the ANZ business confidence survey is due at 1pm.
