The New Zealand dollar closed at 40.13USc at the end of an unspectacular week, hitting near-lows overnight on Thursday as the euro continued to plummet.
Derek Rankin of Greenwich Financial Services said the kiwi was nowhere near finding a level and had sunk to within six points of its all-time low
overnight. Shortly after 9 am the kiwi was back up at 40.17c.
"It's very much too early to say the New Zealand dollar has even come close to bottoming, and the downtrend is very much in play," Mr Rankin said.
Worse-than expected overseas trade data on Thursday showed no evidence the low New Zealand dollar was providing any positive results.
The next major piece of data will be the Reserve Bank's monetary policy statement in early December.
"Really it fell to 39.66c overnight ... it's not what you would call a spectacular performance," Mr Rankin said.
"There is definitely a more confident mood out there as people are beginning to wonder whether it has stopped falling, but it is still really reactive to what is going on in the overseas markets."
The euro hit a historic low overnight on Thursday of 82.28USc and, although both Australasian currencies were hit, the kiwi appeared to outperform the aussie throughout the week.
American investment analyst Dennis Gartman, editor and publisher of the Gartman Letter, was reported as advising clients to buy the New Zealand dollar. He was mildly optimistic the kiwi had seen its low, and described investment in the unit as a "fully fledged bottom-picking expedition."
HSBC said in an update released yesterday morning that sentiment seemed to be changing for the kiwi with US investment advisers bullish on it.
- NZPA
