The New Zealand dollar traded near 10-month lows against the greenback as the case built for more interest rate cuts.
By 5pm today the kiwi was buying US73.15c from US73.45c at 5pm yesterday, having dropped towards US73.10c at one point.
ANZ bank said the NZ dollar had movedto a new 2008 low yesterday following comments from Reserve Bank Governor Alan Bollard late yesterday supporting further interest rate cuts.
The suggestion of further interest rate cuts was supported by the release of the National Bank Business Outlook survey today, which recorded a deterioration in business confidence.
The US dollar has been rising, winning an "ugly contest" among currencies, but slightly higher oil prices countered its upward momentum and there is US data due this week.
The kiwi did make some ground on its Australian counterpart to A77.50c at 5pm from A77.44c at 5pm yesterday.
Against the European currency, there was little change with the NZ dollar buying 0.4695 euro at 5pm from 0.4709, and the trade weighted index was lower at 65.64 from 65.85 at 5pm yesterday.
The NZ dollar was buying 78.98 yen at the local close from 79.28 yesterday.
Dr Bollard's speech yesterday would continue to weigh on the NZ dollar, which would spill over into the aussie, particularly if their dataflow continued to print soft, ANZ said.
