The New Zealand dollar plunged to a new low of US41.65c overnight as oil prices hit new highs.
Dealers said the dollar was undermined by the weakness of the euro and the Australian dollar, and all three would continue to remain at the mercy of the strong US dollar.
The previous low was US42.35c, set on August 24.
As the dollar's slide continues, oil prices have risen to their highest level since the 1991 Gulf War.
In the past 10 days they have gone up 12 per cent on the New York market. In New Zealand dollar terms that is a rise of nearly 15 per cent, raising the spectre of more petrol price rises.
The dollar recovered slightly to close at US41.98c in local trade yesterday. But later in the night, it was back down to 41.90c on overseas markets.
NZ dollar hits new depth overnight
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