The New Zealand dollar closed below US68c today for the first time in nearly a year.
It finished at US67.97c, from US68.07c at yesterday's local close.
ANZ Investment Bank chief dealer Murray Hindley said the kiwi's bias was still on the downside as concerns about economic weakness weighed the kiwi down.
He said United States names were liquidating their kiwi positions.
Trading was choppy in a range of US67.62c and US67.97c.
Mr Hindley said the new support level was now about US67.60c.
The influential Organisation for Economic Co-operation and Development (OECD) released an upbeat report on the state of the New Zealand economy overnight -- predicting growth of between 3.25 per cent and 3.5 per cent per annum until 2010.
The OECD forecast any slowdown in the economy -- fuelled by the high kiwi, soft export performance and high interest rates -- to be short-lived, with growth improving from 2.9 per cent in 2005 to 3.3 per cent from 2007-2010.
But Westpac Bank put out a report that was as bleak as the OECD report was upbeat -- tipping that the economy is slipping towards recession, shored up only by a strong housing market and high employment.
In some of the toughest talking for months, Westpac chief economist Brendan O'Donovan described New Zealand's present business cycle as "well past its best-by-date".
"Thank goodness the housing market hasn't yet hit the wall, or else the dreaded R word, recession, would be the topic of the day."
At the close, the greenback was buying 111.62 yen (111.55 at 5pm yesterday), while the euro softened to US$1.1912 (US$1.927). The Australian dollar was buying US74.98c (US74.95c).
On its crosses, the kiwi was buying A90.61c (A90.78c), 38.59 British pence (38.59), 0.5708 euro (0.5698), 0.8855 Swiss francs (0.8827) and 75.92 yen (75.82).
The TWI ended at 69.22 (69.21) and the monetary conditions index was at plus 964 (965).
On the money markets, 90-day bank bill yields were steady at 7.03 per cent, as were the July 2009 bonds at 5.91 per cent, and the April 2015s at 5.78 per cent.
- NZPA
<EM>Currency:</EM> Dollar below US68c for first time in year
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