The New Zealand dollar, once the darling of yield seeking investors, has lost its flavour as interest rates plumb new lows and as concern mounts about world economic growth.

Since its float in 1985 the Kiwi has enjoyed a reputation as a high yielder - often allowing foreign exchange players access higher interest rates than can be achieved in their own countries.

The attractive interest rate differential has played a big part in the currency's often unwanted strength, especially from the Reserve Bank's perspective.

Those days are gone.


Or, as Kiwibank market strategist Mike Shirley puts: "We are standing on