The New Zealand dollar was slipping below US75c against the greenback when the local market opened, while holding in a tight range against the Australian currency.
By 8am the NZ dollar was at US75c, having headed down from around US75.25c about 1am. Against the aussie it traded in a narrow band
between about A73.90c and A73.65c overnight.
BNZ currency strategist Mike Jones said the sharp paring of the NZ dollar's yield advantage continued to act as a heavy weight on the currency.
While NZ-US interest rate differentials had recovered some of the ground lost in the wake of the Christchurch earthquake, they remained at levels consistent with further falls of the NZ dollar against the US currency.
As a result the NZ dollar failed to be buoyed by signs of further acceleration in New Zealand's commodity export prices, Mr Jones said.
According to yesterday's ANZ index, world prices for New Zealand's main export commodities rose 2.7 percent in February to yet another record, while early today milk prices surged a further 5.9 percent at Fonterra's fortnightly auction.
Broadly, the US dollar fell to a 3-1/2-month low against a basket of other major currencies after Federal Reserve chief Ben Bernanke offered no hint that the US central bank was considering tightening its loose monetary policy.
The NZ dollar was down to 0.5435 euro at 8am from 0.5446 at 5pm yesterday, and fell to 61.42 yen from 61.75. The trade weighted index dropped to 66.24 from 66.45.
