The New Zealand dollar found support around 65 US cents, which Prime Minister John Key has previously referred to as the "Goldilocks" level - neither too high nor too low - following a sharp decline as traders priced in more interest rate cuts following weak dairy prices.
The kiwi was trading at 65.15 US cents at 8am in Wellington, from 65.11 cents at the New York close and 65.41 cents at 5pm on Friday.
The trade-weighted index edged lower to 69.31 from 69.42 on Friday.
The local currency dropped more than 2 per cent last week after a slump in milk powder prices at the GlobalDairyTrade auction fuelled calls for the Reserve Bank to cut interest rates more aggressively to prop up the country's biggest export sector.
The kiwi's decline appears to have halted for now as traders assess their positions ahead of the Reserve Bank interest rate decision on Thursday.