The New Zealand dollar scraped higher yesterday after sniffing the post-1985 float low of 44.60USc on Friday night. It closed at 44.86c from 45.22c at the nominal 5 pm Friday close.
This year's low was 44.60USc, struck in May.
The kiwi also dipped below 30 British pence, compared to a post-float figure of 41p.
The Deutsche Bank vice-president of foreign exchange, Andrew Burdon, said the market was somewhat disappointed that another deal involving the unwinding Fletcher Challenge conglomerate had not gone through last week.
"There has been quite a bit of disappointment from the market. A few guys got out of positions on Friday night in New York.
"The kiwi's under pressure. There are some small bits of buying but it looks as though this week we're going to make some new lows down through that 44.60c region - which we deem as support in the short term."
Mr Burdon said the euro and aussie were also both under pressure. Given that, he picked the kiwi - with no positives to sell to overseas investors - to open a fresh range of 44-45USc.
Aside from negatives due to New Zealand's fragile economic outlook, Mr Burdon said, the big factor driving world currencies remained US dollar strength.
The next significant news will come with the Reserve Bank's monetary policy statement tomorrow.
Deutsche Bank believes the central bank will increase interest rates, although guesses are different elsewhere. "If they do go, offshore markets will once again see this as a negative for the economy."
People are concerned higher interest rates will strangle the economy but inflation pressures do exist, presenting a difficult problem for the bank.
Mr Burdon said that, notwithstanding that, the background to the kiwi market was persistent, nagging selling.
"In the macro [overall] sense, you've really got to look at the current account problem. The everyday flow is consistent selling of kiwi as people pay for imported goods."
- NZPA
<i>Currency:</i> Kiwi fails to breach 45USc
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