The New Zealand dollar slumped to 2002 lows yesterday and dealers said it was in no hurry to stop.
At 5pm the kiwi was trading at US41.39c compared with its US41.72c close Wednesday.
It has fallen more than 3.7 per cent from US43c in little over week and dealers predicted it would go a little lower overnight - between US41.05-55c.
Westpac NZ chief dealer Basil Payn (correct) expected the kiwi to keep trending down as players unwound long positions created at the beginning of the year.
"Certainly the market seems to be in sell-the-rally mode at the moment," he said.
Citibank dealer Dean Sheridan said there was little on the horizon which might arrest the trend although further US data was due out this week. A test would be around US41.20c.
A reasonably large flow on the kiwi-aussie cross also resulted in a substantial fall in the kiwi's trans-Tasman buying power. It closed at A81.51c compared with A82.26c at 9am and A82.91c at Wednesday's close.
Mr Sheridan said it was not clear what had prompted the drop, but it appeared to be spurred by one bank.
The kiwi's slide was not thought to be affected by the US Federal Reserve's decision to leave interest rates unchanged. The decision was anticipated.
The Australian dollar was also left unmoved, trading at US50.78c compared with the US50.94c close on Wednesday. It was buying $NZ1.2269 ($NZ1.2208).
The kiwi eased against most currencies yesterday, buying 54.97 yen (55.36) 0.4799 euro (0.4821c), 29.26 pence (29.51), and 0.7068 Swiss francs (0.7082).
The Trade Weighted Index was at 50.65 (50.99), 90-day bank bills were at 4.88 per cent (4.87) and the monetary conditions index eased to minus 810 (minus 778).
In the debt market, the March 2002 bonds were at 4.74 per cent (4.73), the April 2004s at 5.89 per cent (5.88), the November 2006s at 6.41 per cent (6.31), and the November 2011s at 6.65 per cent (6.58).
- NZPA
<i>Currency:</i> Kiwi falls to lowest levels this year
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